Pizza Hut’s Parent Company Considers Selling the Chain
Pizza Hut may soon be placed on the market. Yum Brands, which owns Pizza Hut, announced on Tuesday that it is formally reviewing options for the brand amid tough competition in the pizza industry.
Current Strengths and Challenges
Yum CEO Chris Turner highlighted Pizza Hut’s advantages:
- A global presence with nearly 20,000 stores across more than 100 countries
- Strong growth in several markets outside the U.S.
International sales increased by 2% during the first nine months of this year, with China standing as the second-largest market after the U.S.
U.S. Market Performance
Despite international gains, Pizza Hut generated nearly half its revenue from the United States, where it operates about 6,500 stores. However, U.S. sales declined by 7% over the same period.
The brand has faced challenges adapting to consumer preferences, as it was historically reliant on large, outdated dine-in restaurants while customers increasingly favored fast pickup and delivery. In 2020, a major Pizza Hut franchise declared bankruptcy and shuttered 300 locations.
Market Share Decline
According to Technomic, a food service consulting firm, Pizza Hut’s share of U.S. pizza chain sales dropped to 15.5% from 19.4% in 2019.
Pizza Hut has many strengths, including a global footprint and strong growth in many markets.
— Yum CEO Chris Turner
Author’s summary: Pizza Hut faces significant challenges in the U.S., prompting its parent company Yum Brands to consider selling the global pizza chain despite its international growth.