Pizza Hut’s parent company, Yum Brands, announced a major restructuring plan on Wednesday. The chain will close approximately 250 underperforming locations across the United States in the first half of 2026. This move comes as the company struggles to modernize its footprint and compete with delivery-focused rivals.
CFO Ranjith Roy stated during an earnings call that the closures are part of an effort to improve overall performance. Pizza Hut saw a 1% decline in same-store sales globally throughout 2025. While international markets like Latin America and Asia are growing, the U.S. market continues to lag.
The company has not yet released a specific list of the locations targeted for closure. These shuttered stores represent about 3% of the brand's total U.S. presence. Many of the struggling sites are older, large-scale dine-in restaurants that no longer fit modern consumer habits.
Shoppers today are increasingly focused on fast pickup and delivery rather than sitting down in a traditional dining room. This shift has allowed competitors like Domino's to thrive and claim the title of the world's largest pizza chain. Domino's currently operates over 21,750 stores compared to Pizza Hut's roughly 19,974.
Rumors have circulated since late 2025 that Yum Brands might be looking to sell the iconic pizza chain. The brand was founded in 1958 by two brothers who famously borrowed $600 from their mother to get started. Despite its historic status, the "Red Roof" design is becoming less common as the brand pivots to smaller delivery hubs.
The restructuring follows a difficult period for Pizza Hut's franchisees. In 2020, one of its largest operators filed for bankruptcy and closed 300 stores. Yum Brands is now betting that leaner operations will help the chain reclaim its competitive edge in a crowded market.