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. The chain has faced difficulties competing in a saturated pizza market.
Company Strengths and Market Presence
Yum CEO Chris Turner highlighted Pizza Hut’s many strengths, including its global reach and strong growth in several markets. The chain operates nearly 20,000 locations across more than 100 countries, with international sales increasing by 2% during the first nine months of the year.
China is Pizza Hut's second-largest market outside the United States. Despite this, about half of Pizza Hut's total sales come from the U.S., where it maintains approximately 6,500 stores.
Challenges in the U.S. Market
U.S. sales declined by 7% in the same period. The brand has struggled due to its reliance on large, outdated dine-in restaurants, whereas consumer preferences have shifted toward fast pickup and delivery.
In 2020, one of Pizza Hut's biggest franchisees filed for bankruptcy and closed 300 locations, reflecting these difficulties.
Market Share Decline
Pizza Hut's share of U.S. pizza chain sales dropped to 15.5%, down from 19.4% in 2019, according to foodservice consulting firm Technomic.
"Pizza Hut has many strengths, including a global footprint and strong growth in many markets." — Yum CEO Chris Turner
Author’s summary: Pizza Hut’s parent company is exploring a sale as the brand grapples with declining U.S. sales and market share, despite global growth and a broad international presence.