Pizza Hut’s Parent Company Considers Selling the Chain
Pizza Hut may soon be on the market. Yum Brands, the parent company of Pizza Hut, announced it is conducting a formal review of strategic options for the pizza chain, which has faced challenges competing in a saturated market.
Strengths and Challenges
Yum CEO Chris Turner highlighted several strengths of Pizza Hut, including its extensive global presence and strong growth in various regions. The brand operates nearly 20,000 stores across more than 100 countries, with international sales increasing by 2% in the first nine months of this year.
China ranks as Pizza Hut’s second-largest market outside the U.S. However, approximately half of its revenue comes from the U.S., where it maintains around 6,500 locations. In the same period, U.S. sales declined by 7%.
Market Position and Historical Issues
Pizza Hut has struggled with its legacy of large, outdated dine-in restaurants while consumer preferences shifted toward faster pickup and delivery options. In 2020, one of the chain’s biggest franchisees filed for bankruptcy and shuttered 300 stores.
According to Technomic, a food service consulting firm, Pizza Hut's share of U.S. pizza chain sales has dropped from 19.4% in 2019 to 15.5% currently.
“Pizza Hut has many strengths, including a global footprint and strong growth in many markets,” said Yum CEO Chris Turner.
Photo Caption
Pizza Hut location in Taunton, Massachusetts, pictured on July 9, 2015. (AP photo)
Author’s Summary
Pizza Hut’s parent company is evaluating options for the brand amid declining U.S. sales and shifting consumer preferences, despite its global reach and growth in some markets.