Pizza Hut to Close 250 US Stores as Parent Company Considers Selling Brand

Yum Brands, the parent company of Pizza Hut, plans to shutter underperforming locations in the first half of 2026.

Feb. 5, 2026 at 7:39pm

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Pizza Hut plans to close 250 U.S. restaurants in the first half of 2026 as its parent company, Yum Brands, considers selling the chain. Yum Brands said the closures will target underperforming Pizza Hut locations, which have struggled with outdated stores and growing competition from rivals like Domino's. Internationally, Pizza Hut's results have been stronger, with sales growth in Asia, the Middle East, and Latin America.

Why it matters

The planned closures and potential sale of Pizza Hut reflect the ongoing challenges facing the restaurant industry, particularly traditional dine-in chains, as they compete with delivery-focused competitors and adapt to changing consumer preferences. The move could have significant implications for Pizza Hut's employees, franchisees, and the communities where the closed locations are situated.

The details

Yum Brands, the parent company of Pizza Hut, said it is targeting underperforming Pizza Hut restaurants in the U.S. as part of a plan to close 250 locations in the first half of 2026. Pizza Hut currently has more than 6,000 locations in the U.S. The company cited outdated stores and growing competition as factors contributing to the chain's struggles, with U.S. same-store sales falling 5% in 2025. In contrast, rival Domino's saw a 2.7% increase in U.S. same-store sales during the first nine months of 2025.

  • Pizza Hut plans to close 250 U.S. restaurants in the first half of 2026.

The players

Yum Brands

The parent company of Pizza Hut, KFC, Taco Bell, and Habit Burger & Grill.

Chris Turner

The CEO of Yum Brands.

Domino's

The world's largest pizza company, which has seen stronger sales performance compared to Pizza Hut.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

The planned closures and potential sale of Pizza Hut highlight the ongoing challenges facing traditional dine-in restaurant chains as they compete with delivery-focused competitors and adapt to changing consumer preferences. The move could have significant implications for Pizza Hut's employees, franchisees, and the communities where the closed locations are situated.