Pizza Hut’s Parent Company Considers Selling the Chain
Pizza Hut may soon be put up for sale as Yum Brands, its parent company, announced a formal review of options for the brand, which has faced challenges competing in a saturated pizza market.
Brand Strengths and Global Presence
Yum CEO Chris Turner highlighted Pizza Hut’s strengths, including its extensive global footprint and solid growth in multiple markets. The chain operates nearly 20,000 stores across more than 100 countries, with international sales rising by 2% during the first nine months of this year. China is the company’s second-largest market outside the U.S.
Challenges in the U.S. Market
Despite its global reach, Pizza Hut relies heavily on U.S. sales, which constitute nearly half of its revenue from around 6,500 American stores. However, U.S. sales dropped by 7% over the same period. The brand has struggled with an outdated model of large dine-in restaurants, while customers increasingly prefer faster pickup and delivery options.
In 2020, a major Pizza Hut franchisee filed for bankruptcy protection and closed 300 stores, reflecting ongoing difficulties.
Market Share Decline
Pizza Hut's share of U.S. pizza chain sales has declined to 15.5%, down from 19.4% in 2019, according to food service consulting firm Technomic.
“Pizza Hut has many strengths, including a global footprint and strong growth in many markets.” — Yum Brands CEO Chris Turner
Author's summary: Pizza Hut faces declining U.S. sales and market share amid a shifting fast-food landscape, prompting its parent company Yum Brands to consider selling the brand.