Pizza Hut to close 250 US locations as parent company weighs sale

Pizza Hut plans to close 250 underperforming restaurants across the United States during the first half of this year as parent company Yum Brands explores a potential sale of the chain.

The closures target locations that have struggled to keep pace with modern dining trends. Pizza Hut currently operates more than 6,000 locations nationwide.

Yum Brands launched a formal review of the brand in November, citing outdated storefronts and intensifying competition in the pizza segment. Sales at U.S. stores open at least a year fell 5% last year.

The chain's domestic performance stands in contrast to rival Domino’s, which saw U.S. sales climb 2.7% during the first nine months of 2025.

While the brand faces headwinds in its home market, international results remain positive. Overseas sales grew 1% last year, bolstered by expansion in the Middle East, Latin America, and Asia. China continues to be Pizza Hut's second-largest market after the United States.

Yum CEO Chris Turner said the company expects to complete its strategic review of Pizza Hut’s options by the end of the year.

The shuttering of 250 Pizza Hut locations is less a sudden shock than a definitive symptom of the brand’s protracted decline within its domestic market. At the heart of this structural weakness is a fundamental failure to pivot as the fast-food landscape shifted. Pizza Hut’s legacy business model—heavily anchored in the traditional dine-in experience—has been rendered increasingly obsolete by leaner, more agile competitors.

The divergence in performance between Pizza Hut and its primary rival, Domino’s, offers a stark case study in market adaptation. While Pizza Hut struggled with an aging physical footprint, Domino’s aggressively capitalized on digital transformation, optimizing its mobile interface and delivery logistics to capture a convenience-driven consumer base. Yum Brands' recent signal that it is "evaluating options"—frequently corporate shorthand for a potential divestiture—suggests a strategic desire to offload an underperforming asset to prioritize higher-growth brands like KFC and Taco Bell.

Paradoxically, Pizza Hut’s international operations, particularly in Asia, maintain a different trajectory where the "American dining" experience still commands a premium. Domestically, however, the outlook is far more clinical. Without a radical structural overhaul centered on delivery-centric architecture and technological integration, Pizza Hut risks transitioning from an industry titan to a historical relic in an increasingly digitized American quick-service market.

The shuttering of 250 Pizza Hut locations across the country carries direct implications for Vietnamese-American small business owners and workers. Many in the community have invested in major fast-food franchises, and the decision to close "underperforming" stores represents a significant financial blow to these operators. Beyond ownership, these restaurants serve as vital employment hubs, providing essential part-time jobs for students and hourly workers within the community. For Vietnamese entrepreneurs—whether they are running a national franchise or a local phở restaurant—the decline of a legacy brand like Pizza Hut serves as a stark reminder of the need to pivot. Staying competitive in today’s landscape requires constant innovation and a rapid adaptation to shifting consumer habits, particularly the move toward online ordering and delivery-centric dining.