Pizza Hut's parent company weighs selling the chain

"Yum Brands, Pizza Hut's parent company, said Tuesday it's conducting a formal review of options for the brand, which has struggled to compete in a crowded pizza market. Yum CEO Chris Turner said Pizza Hut has many strengths, including a global footprint and strong growth in many markets. Pizza Hut has nearly 20,000 stores in more than 100 countries, and its international sales were up 2% in the first nine months of this year. China is its second-largest market outside of the U.S."

""The Pizza Hut team has been working hard to address business and category challenges; however, Pizza Hut's performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum Brands," Turner said in a statement. "To truly take advantage of the brand we've built and the opportunities ahead, we've made the decision to initiate a thorough review of strategic options.""

"But Pizza Hut gets nearly half its sales from the U.S., where it has around 6,500 stores, and U.S. sales fell 7% in the same period. Pizza Hut was long saddled with large, outdated dine-in restaurants at a time when consumers wanted fast pickup and delivery. In 2020, one of Pizza Hut's largest franchisees filed for bankruptcy protection and closed 300 stores. Pizza Hut now controls 15.5% of U.S. pizza chain sales, down from 19.4% in 2019, according to Technomic, a food service consulting company."

Yum Brands is conducting a formal review of strategic options for Pizza Hut after the brand struggled in a crowded pizza market. Pizza Hut operates nearly 20,000 stores in more than 100 countries, with international sales up 2% in the first nine months and China as its second-largest market. The U.S. accounts for about half of sales with roughly 6,500 stores, but U.S. sales fell 7% in the same period. Large, outdated dine-in restaurants and a 2020 franchisee bankruptcy that closed 300 stores contributed to market share decline from 19.4% in 2019 to 15.5%. Yum set no deadline for the review; its shares rose nearly 7% and the company reported third-quarter revenue growth of 8% driven by KFC and Taco Bell. Pizza Hut was founded in 1958 in Wichita, Kansas, by two brothers who borrowed $600 from their mother.

Read at Fast Company