Quick Read
- Pizza Hut plans to close 250 “underperforming” U.S. locations by mid-2026.
- The decision was announced by parent company Yum! Brands Inc. on February 4, 2026.
- U.S. sales for Pizza Hut declined by 3% in Q4 2025, while Taco Bell sales rose 7%.
- The closures are part of the “Hut Forward” strategy to revitalize the brand.
- Yum! Brands is also conducting a strategic review of Pizza Hut, including a potential sale.
NEW YORK (Azat TV) – Pizza Hut is set to close 250 “underperforming” locations across the United States in the first half of 2026, a move announced by its parent company, Yum! Brands Inc., as part of a broader strategic review and turnaround effort for the struggling pizza chain. The decision comes after Pizza Hut experienced a 3% decline in U.S. sales in the fourth quarter of 2025, prompting the company to implement its “Hut Forward” strategy aimed at revitalizing the brand’s domestic performance.
During an earnings call on February 4, 2026, Yum! Brands Chief Financial Officer Ranjith Roy confirmed the planned closures, emphasizing that they are a component of the “Hut Forward” strategy. This initiative focuses on “vibrant marketing, modernization of technology, and franchise agreements” to address long-term performance issues within Pizza Hut’s U.S. footprint, according to statements reported by USA TODAY and NorthJersey.com. The closures represent approximately 3% of Pizza Hut’s U.S. restaurant count, a small fraction of its global estate of 20,000 units, Roy stated.
Pizza Hut’s Strategic ‘Hut Forward’ Initiative
The move to consolidate its U.S. presence follows a period of significant challenges for Pizza Hut. Yum! Brands Inc., which also owns fast-food giants Taco Bell, KFC, and Habit Burger & Grill, has been conducting a formal review of strategic options for the Pizza Hut brand since November 2025. This review includes the possibility of a sale, as Pizza Hut’s U.S. sales declined by 7% when the review was initially announced, according to USA TODAY. Yum! Brands CEO Chris Turner noted at the time that despite efforts, Pizza Hut’s performance indicated a need for additional action, potentially better executed outside of Yum! Brands.
The “Hut Forward” strategy is designed to streamline operations and focus resources on stronger-performing stores, aiming to improve overall brand health. This is not the first time Pizza Hut has faced significant closures; in 2020, approximately 300 stores were shuttered after one of its largest franchisees filed for bankruptcy protection.
Declining Sales Prompt Pizza Hut Closures
The latest round of closures is directly linked to a downturn in Pizza Hut’s financial performance. While sister brands like Taco Bell reported a robust 7% increase in sales during the fourth quarter of 2025, Pizza Hut’s domestic sales declined by 3% in the same period, Courier Post Online reported. This stark contrast highlights the competitive pressures facing the pizza segment, where Pizza Hut contends with a fragmented market including regional chains, independent operators, and a growing number of delivery-focused and digital-first dining models.
Company officials have emphasized that the closures are specifically targeting “underperforming” locations, rather than signaling a broader retreat from the U.S. market. The objective is to strengthen the brand’s overall performance and ensure its long-term viability in a challenging culinary landscape.
Uncertainty for Local Pizza Hut Locations
As of early February 2026, Yum! Brands has not released a specific list of the 250 locations slated for closure, leaving many local communities and franchise operators in suspense. The company has not provided a breakdown of closures by state, nor has it indicated when franchise partners will be notified of specific store decisions. This lack of detail extends to regions like New Jersey, which has one of the nation’s densest pizzeria markets, with thousands of independent and small chain pizza shops competing for business.
New Jersey alone was reported to have approximately 76 Pizza Hut locations as of August 2024, encompassing dine-in, delivery, and carry-out formats. While specific closures remain unconfirmed, local media outlets like Courier Post Online and NorthJersey.com have listed numerous existing Pizza Hut and Pizza Hut Express locations across South and North Jersey, respectively, underscoring the potential impact on these communities. The competitive nature of the New Jersey market, with its deep-rooted local pizzerias, makes it particularly challenging for larger national brands to maintain market share.
Broader Trends in the Restaurant Industry
Pizza Hut’s planned closures are part of a wider trend observed in the fast-food and fast-casual restaurant sectors in early 2026. Several other chains have announced plans to downsize, opting to close underperforming locations and reallocate resources to stronger-performing units. Noodles & Co., for instance, announced in January 2026 its intention to close 30 to 35 stores, while Wendy’s also indicated an ongoing evaluation of underperforming restaurants for potential closure this year, according to USA TODAY. This strategic contraction reflects a broader industry adjustment to evolving consumer preferences, increased operational costs, and intense market competition.
The strategic review and subsequent closures by Yum! Brands underscore the intense pressure on established national restaurant chains to adapt rapidly to changing consumer behaviors and heightened market competition, particularly in a segment as saturated as pizza, where local loyalty and digital innovation increasingly dictate success.