Pizza Hut to Close 250 U.S. Stores in 2026 Amid Delivery Shift

Yum! Brands cites rising costs, franchise economics, and competition from delivery-focused rivals as reasons for the planned closures.

Published on Feb. 6, 2026

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Pizza Hut's parent company Yum! Brands announced plans to shutter around 250 U.S. locations of the pizza chain in the first half of 2026. Local industry experts in San Diego say the closures are part of a broader strategic shift by Pizza Hut to reposition the brand, citing factors like declining dine-in traffic, growing delivery competition, and rising labor and lease costs that have squeezed franchise profitability.

Why it matters

The Pizza Hut closures highlight the ongoing disruption in the restaurant industry, as delivery-focused competitors like Domino's have gained ground and forced traditional dine-in chains to adapt their business models. The move also reflects the challenges facing franchise-based restaurant brands as they balance the needs of corporate owners and individual franchisees.

The details

Yum! Brands says the 250 U.S. store closures are part of a broader program called "Hut Forward" that will also involve new marketing and technology investments. Industry experts note the cuts are likely targeting underperforming locations, as Pizza Hut's hybrid dine-in and delivery model has left some stores especially exposed to the shift toward app-based ordering. While the specific store closures have not been announced, the move could provide a short-term boost to independent pizzerias and smaller delivery services in affected areas.

  • Pizza Hut plans to close around 250 U.S. locations in the first half of 2026.
  • Yum! Brands completed a strategic review of the Pizza Hut brand in November 2025.

The players

Yum! Brands

The parent company of Pizza Hut that announced the planned store closures.

Pizza Hut

The pizza chain that will be closing around 250 U.S. locations as part of a broader strategic shift.

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What they’re saying

“The 250 stores is a very small portion of the 20,000 estates Pizza Hut has globally.”

— Ranjith Roy, CFO (Nation's Restaurant News)

What’s next

Yum! Brands and its franchise partners will determine which specific Pizza Hut locations will close in the coming weeks.

The takeaway

The Pizza Hut closures reflect the broader challenges facing traditional dine-in restaurant chains as they adapt to the rise of delivery-focused competitors and shifting consumer preferences. The move highlights the need for franchise-based brands to balance the needs of corporate owners and individual franchisees in order to remain competitive.