Pizza Hut’s Parent Company Considers Selling the Chain
Pizza Hut may soon be put up for sale as Yum Brands, the company’s parent, announced a formal review of options for the brand amid tough competition in the pizza market.
Brand Strengths and Market Presence
Yum CEO Chris Turner highlighted Pizza Hut’s strong points, including its global reach and growth in various markets. The chain operates nearly 20,000 locations across more than 100 countries, with international sales increasing by 2% in the first nine months of the year. China stands as its second-largest market outside the United States.
Challenges in the U.S. Market
Despite its international gains, Pizza Hut faces difficulties at home. Nearly half of its sales come from the U.S., where it has about 6,500 stores. However, U.S. sales dropped by 7% during the same period. The brand has struggled with an outdated model focused on large dine-in restaurants, while consumer preference has shifted toward fast pickup and delivery.
Financial Setbacks
In 2020, one of Pizza Hut’s largest franchisees filed for bankruptcy protection and closed 300 stores. The chain’s share of U.S. pizza chain sales declined from 19.4% in 2019 to 15.5% in recent reports, according to food service consultants Technomic.
"Pizza Hut has many strengths, including a global footprint and strong growth in many markets." – Yum CEO Chris Turner
Author’s summary: Pizza Hut’s parent company Yum Brands is exploring strategic options as the chain faces declining U.S. sales despite its strong global presence and ongoing transformation challenges.