Yum! Brands weighs Pizza Hut sale amid faltering performance

Yum! Brands, the multinational operator behind fast-food giants KFC and Taco Bell, is reportedly exploring a potential sale of its Pizza Hut division following continued underperformance in its core markets of the United States and Europe. The review signals a pivotal moment for one of the world’s most recognisable pizza brands as it struggles to retain market share in an increasingly competitive and value-conscious dining landscape.

The company confirmed that it has initiated a “strategic review of options” that may include a full or partial sale of the Pizza Hut business. Chief executive Chris Turner acknowledged that the brand’s future success “may be better executed outside of Yum! Brands”, noting that repositioning efforts in several key markets could take “multiple years” to bear fruit.

Pizza Hut’s challenges are multi-layered. Once a dominant force in both the dine-in and delivery pizza sectors, the brand has been outpaced by more agile competitors such as Domino’s and Papa Johns. Across the United States — which accounts for roughly 42% of Pizza Hut’s global sales — same-store revenues have declined for eight consecutive quarters. Yum! Brands’ Q3 2025 earnings showed a 7% year-to-date drop in US sales, compared with growth of 6% and 9% for KFC and Taco Bell respectively.

Internationally, Pizza Hut continues to expand its footprint, with almost 300 new sites opened across 31 countries this year. However, global same-store sales fell 1% in the third quarter, and the brand’s performance remains a drag on Yum!’s overall profitability. Pizza Hut currently contributes around 11% of Yum!’s operating profits — a modest share compared to its sister brands’ strong margins.

The brand’s troubles have been especially visible in the UK. Last month, Yum! Europe stepped in to rescue 64 Pizza Hut restaurants from administration after franchisee DC London Pie collapsed. The move came at a significant cost — more than 1,000 jobs were lost as 68 restaurants and 11 delivery sites were closed. Administrators’ reports revealed that UK operations had been burdened by high debt levels, rising labour costs, and intensifying competition from quick-service and delivery-focused rivals.

Yum! acquired 36 leasehold premises from the failed operator for £3.7 million, signalling a willingness to consolidate and streamline operations rather than pursue rapid expansion. Despite the brand’s storied UK heritage — Pizza Hut opened its first British restaurant in the early 1970s — the closures raise questions about the future viability of legacy high-street restaurant models in the current market.

The company has retained investment banks Goldman Sachs and Barclays to assist in evaluating potential outcomes but has not set a timetable for the review. Turner emphasised that no decision has been made and that the group remains committed to supporting franchise partners throughout the process.

The potential divestment comes as Yum! Brands doubles down on high-growth areas, particularly Taco Bell, which continues to attract younger consumers through targeted marketing and product innovation. Analysts suggest that selling Pizza Hut — or reconfiguring its ownership structure — could free up resources for Yum! to focus on expanding its strongest performers and adapting to shifting consumer preferences.

Pizza Hut’s struggles serve as a cautionary tale for operators across hospitality and quick-service dining. Consumer habits have evolved dramatically post-pandemic, favouring convenience, value, and digital ordering channels over traditional dine-in formats. Brands that fail to adapt quickly risk losing relevance — even those with deep-rooted heritage.

For business leaders in fish and chips or wider hospitality, the story underlines the importance of agility and brand reinvention. Just as Pizza Hut must redefine its value proposition to stay competitive, UK food operators face similar pressures to modernise menus, streamline operations, and invest in customer experience technologies to remain resilient in an era of fluctuating consumer spending and rising operational costs.