Pizza Hut’s Parent Company Considers Selling the Chain
Pizza Hut may soon be put up for sale. Yum Brands, the parent company of Pizza Hut, announced on Tuesday that it is conducting a formal review of options for the brand as it faces tough competition in the crowded pizza market.
Brand Strengths and Challenges
Yum CEO Chris Turner highlighted that Pizza Hut has significant strengths, including a broad global presence and strong growth in various markets. The chain operates nearly 20,000 locations across more than 100 countries, with international sales rising by 2% in the first nine months of this year. China ranks as its second-largest market outside the United States.
Performance in the U.S. Market
Pizza Hut generates almost half of its sales in the U.S., where it maintains about 6,500 stores. However, domestic sales dropped 7% in the same timeframe. The brand has struggled with large, outdated dine-in restaurants while consumer preferences have shifted toward fast pickup and delivery services.
- In 2020, a major Pizza Hut franchisee filed for bankruptcy and closed 300 stores.
- Pizza Hut currently holds 15.5% of the U.S. pizza chain market share, down from 19.4% in 2019, according to food service consultant Technomic.
"Pizza Hut has many strengths, including a global footprint and strong growth in many markets." – Chris Turner, Yum CEO
Pizza Hut brand is facing significant challenges in the U.S. market despite strong global performance, prompting Yum Brands to evaluate its future options.