Pizza Hut’s Parent Company Considers Selling the Chain
Pizza Hut may be put up for sale as Yum Brands, the parent company, announced a formal review of options for the struggling pizza brand. Despite challenges, Pizza Hut retains several strengths.
Strengths and Market Presence
Yum CEO Chris Turner highlighted Pizza Hut’s global reach and strong growth in multiple regions. The chain operates nearly 20,000 stores across more than 100 countries. International sales rose by 2% in the first nine months of this year, with China being the second-largest market after the U.S.
Challenges in the U.S. Market
Almost half of Pizza Hut’s sales come from the U.S., where it runs about 6,500 stores. However, U.S. sales declined by 7% in the same period. Pizza Hut has faced difficulties adapting to changing consumer demands, as many of its locations are large, outdated dine-in restaurants while customers increasingly prefer fast pickup and delivery.
Financial Struggles and Market Share
- In 2020, a major franchisee filed for bankruptcy protection, resulting in the closure of 300 stores.
- Pizza Hut’s share of U.S. pizza chain sales dropped significantly—from 19.4% in 2019 to 15.5% currently, according to Technomic, a food service consulting firm.
"Pizza Hut has many strengths, including a global footprint and strong growth in many markets." — Yum CEO Chris Turner
Pizza Hut in Taunton, Massachusetts, pictured on July 9, 2015.
Author’s Summary
Despite solid international growth, Pizza Hut faces declining U.S. sales and market share, prompting Yum Brands to explore selling the chain amid shifting consumer preferences.