Yum! Brands Considers Selling Pizza Hut Amid Declining U.S. Sales

Yum! Brands, the company behind KFC, Taco Bell and Pizza Hut, is weighing the possibility of selling Pizza Hut as the chain continues to face declining sales and mounting competition in the fast-food pizza market.

The move follows several quarters of falling same-store sales in the United States, which accounts for about 42% of Pizza Hut’s global revenue. Despite improvements in some international markets, the slowdown in the U.S. has pulled down the brand’s overall performance.

“Pizza Hut’s recent results show the need for further action to unlock the brand’s full potential,” said Yum! chief executive Chris Turner in a statement. “We are evaluating strategic options which may involve the brand operating outside the Yum! portfolio.”

While Taco Bell and KFC continue to deliver stronger results – with same-store sales rising 7% and 3% respectively in the latest quarter – Pizza Hut reported a 1% decline. Yum! earns roughly 11% of its operating profit from Pizza Hut, which has around 20,000 restaurants worldwide, including 6,500 in the U.S.

Competitive pressure has intensified, with rivals such as Domino’s and Papa Johns capturing more customers through aggressive marketing and pricing strategies. Domino’s recently reported a 6% increase in quarterly sales, crediting promotions for driving growth.

Turner acknowledged efforts within Pizza Hut to revive performance but noted the brand is struggling to keep pace in an environment where consumers are increasingly price-conscious due to inflation and softer labor conditions. The broader fast-food sector has also been affected, with some chains reporting signs of financial strain among younger customers.

In the UK, Pizza Hut is in the process of closing nearly half its dine-in restaurants amid declining demand and competition from newer, trend-focused pizza chains.

Yum! has not indicated when it expects to make a final decision regarding Pizza Hut’s future.