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The closures are being rolled into a corporate initiative called “Hut Forward,” which includes marketing refreshes and technology upgrades. Yum even approved a one-time marketing contribution in an effort to slow the decline.
But the numbers tell a far more troubling story.
Sales Collapse Exposes Brand Failure
Pizza Hut’s domestic same-store sales fell 3 percent in the fourth quarter of 2025, followed by a 5 percent decline for the full year. That puts Pizza Hut at the bottom of Yum’s portfolio.
By contrast, Taco Bell posted 7 percent same-store growth in the same quarter. KFC managed modest growth as well.
Pizza Hut was the only major Yum brand moving backward in the United States.
The problem is not pizza. Americans still love pizza.
The problem is Pizza Hut.
Pizza Hut’s Future Now Under Review
In November, CEO Chris Turner revealed that Yum Brands is conducting a “formal review of strategic options” for Pizza Hut. That process is expected to conclude sometime in 2026.
Yum has already spent heavily preparing for potential outcomes. In 2025 alone, the company shelled out $36 million on consultants, including $32 million in the fourth quarter. It also wrote off $5 million in franchise incentive assets to prepare the brand for possible divestment.
That is not the behavior of a company confident in a turnaround.
Domino’s Expands While Pizza Hut Retreats
While Pizza Hut prepares to shrink, Domino’s is doing the opposite.
Domino’s currently operates about 7,090 locations in the United States and continues to add stores. Little Caesars, the third-largest chain, claims more than 4,200 U.S. locations.
Pizza Hut still lists roughly 6,700 domestic locations, but that number is poised to fall quickly.
Industry insiders point to years of strategic missteps. Domino’s invested early in delivery logistics, digital ordering, and reliable apps. Pizza Hut lagged behind with buggy technology, confusing promotions, and declining food quality.
International Growth Can’t Save U.S. Collapse
Yum Brands points to international performance as a bright spot. Pizza Hut opened more than 440 new international locations in the fourth quarter and nearly 1,200 restaurants globally in 2025 across 65 countries.
Same-store sales grew 1 percent internationally, driven by demand in the Middle East, Latin America, and Asia.
But foreign growth cannot mask domestic failure. American consumers are voting with their wallets, and Pizza Hut is losing badly at home.
Pizza Industry Faces Broader Economic Pressure
Pizza Hut’s troubles come amid a broader shakeout in the restaurant sector.
MOD Pizza once operated about 500 locations before closing dozens of stores and selling assets to Elite Restaurant Group. Today, its website lists 448 locations.
Bertucci’s Restaurants filed for Chapter 11 bankruptcy on April 24, 2025, marking its third bankruptcy since 2018. It started the year with 15 locations and lost several more by November.
Even franchise operators are collapsing. People First Pizza Inc., a Domino’s franchisee, filed Chapter 11 in March 2025. A Little Caesars operator followed with a bankruptcy filing in July.
Rising food costs, labor expenses, and crushing lease rates are wiping out brands that cannot adapt.
A Brand Squandered
Pizza Hut once dominated American pizza culture. Instead of innovating, it coasted. While rivals invested in speed, tech, and consistency, Pizza Hut delivered declining service and forgettable food.
Now, 250 stores are closing. The parent company is exploring an exit. And the brand’s future hangs in the balance.
Yum Brands recently reported strong overall earnings and even raised its dividend, underscoring one uncomfortable truth: Pizza Hut’s collapse is not an industry inevitability. It is a self-inflicted failure.
Taco Bell and KFC are thriving. Domino’s is expanding.
Pizza Hut, once king of the pizza world, is being pushed toward the clearance rack.
And unless something drastic changes, this may only be the beginning.
