Pizza Hut’s parent company says it’s considering selling the chain
Yum Brands Considers Selling Pizza Hut Amid Market Challenges
By DEE-ANN DURBIN
Yum Brands, the parent company of Pizza Hut, has announced that it is exploring the possibility of selling the struggling pizza chain. The decision comes as Pizza Hut faces tough competition in the crowded pizza market.
Despite having a strong global presence with nearly 20,000 stores in over 100 countries and positive growth in many markets, Pizza Hut has been facing challenges in the United States. With around 6,500 stores in the U.S., the brand has seen a 7% decline in sales in the first nine months of this year.
The company’s struggles in the U.S. market have been attributed to its outdated dine-in restaurant model, which no longer aligns with consumer preferences for fast pickup and delivery services. In 2020, one of Pizza Hut’s largest franchisees filed for bankruptcy and closed 300 stores, further impacting the brand’s performance.
Yum Brands CEO Chris Turner acknowledged the need for additional actions to help Pizza Hut realize its full potential. He stated, “To truly take advantage of the brand we’ve built and the opportunities ahead, we’ve made the decision to initiate a thorough review of strategic options.”
The review process does not have a set deadline, and Yum Brands has refrained from providing further details on the potential sale. The company’s shares rose nearly 7% following the announcement.
Pizza Hut, founded in 1958 in Wichita, Kansas, has a rich history as one of the leading pizza chains globally. However, with changing consumer preferences and increasing competition, the brand has faced challenges in recent years.
Domino’s, known for its focus on delivery and carryout services, has surpassed Pizza Hut to become the world’s largest pizza chain with 21,750 stores. The evolving landscape of the food industry has forced iconic brands like Pizza Hut and Denny’s to adapt to new market dynamics.
The news of Pizza Hut’s potential sale follows Denny’s announcement of being sold to an investor group, highlighting the challenges faced by traditional dine-in establishments in today’s competitive dining market.
