Global pizza chain Pizza Hut will close around 250 outlets across the United States by June this year, as parent company Yum! Brands moves to shut underperforming stores and reassess the brand’s long-term direction.

Yum! Brands Chief Financial Officer Ranjith Roy said during the company’s earnings call that the closures would primarily target weaker-performing Pizza Hut restaurants. The move is part of a broader effort to modernise the chain and improve franchise-level performance.

‘Hut Forward’ drive

The shutdowns are linked to Yum!’s “Hut Forward” initiative, which aims to refresh Pizza Hut’s marketing strategy, update its restaurant formats, and enhance operational efficiency. Executives indicated that the company is also evaluating wider strategic options for Pizza Hut, suggesting the closures could mark the beginning of a deeper reset for the brand in the US market.

The retrenchment highlights Pizza Hut’s continued struggles domestically. While Yum!’s other major brands — Taco Bell and KFC — posted solid growth and expanded their footprints, Pizza Hut reported a decline in US same-store sales.

Global growth continues

Despite the US closures, Yum! emphasised that Pizza Hut continues to expand internationally. The company opened more than 440 gross new Pizza Hut locations globally in the fourth quarter alone, and nearly 1,200 new restaurants in 2025 across 65 countries.

Yum! said the store closures would be concentrated in the first half of 2026, temporarily reducing Pizza Hut’s global unit count. Growth is expected to resume in the second half of the year as new international openings accelerate.

Brand-specific challenge

The announcement comes alongside strong overall earnings for Yum! Brands, which also raised its dividend. Executives stressed that the Pizza Hut closures reflect brand-specific challenges in the US, rather than any broader slowdown across the group.

Analysts say the coming quarters will be critical in determining whether the “Hut Forward” strategy can help Pizza Hut regain relevance in a highly competitive American fast-food market.