Yum Brands begins strategic review for struggling Pizza Hut chain

Yum Brands said on Tuesday it was exploring strategic options for its Pizza Hut chain as the unit struggles to keep pace in a highly competitive fast-food industry vying for sales from a stressed consumer.

“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,” Yum Brands’ new CEO, Chris Turner, said in a statement.

Pizza Hut‘s sales have lagged Yum Brands’ other prominent units, Taco Bell and KFC International, falling for seven consecutive quarters. In comparison, Taco Bell last reported negative comparable sales in June 2020.

Yum Brands’ shares were up about 2% in premarket trading after the company banked on 7% growth in Taco Bell U.S. same-store sales and 3% growth in KFC International to beat third quarter estimates.

Pizza Hut accounts for about 11% of Yum Brands’ operating profits, compared with about 38% for Taco Bell’s U.S. business.

Several quarters of price hikes at restaurants, sticky inflation and economic uncertainty have forced consumers to become more wary about dining out as they look to stretch their budgets. Still, pizzas are viewed as a value-option to feed families.

Industry giant Domino’s Pizza DPZ.O said in October that although fast-food traffic was slowing, consumers were still seeking out its pizzas, helped by promotions and new menu items, as well as its delivery partnerships with third-party aggregators such as Doordash DASH.O and UberEats UBER.N.

While Pizza Hut has also offered value deals such as various personal pizzas for $5 and $2, “an insufficient value message amid a competitive value landscape resulted in transaction softness,” company veteran and former CEO David Gibbs said in August.

Taco Bell’s Tex-Mex cuisine and its more affordable prices have held Yum Brands in good stead against the slowdown in dining out.

Yum Brands’ worldwide same-store sales grew 3% during the quarter ended September 30, 2025 edging past estimates of a 2.68% increase, according to data compiled by LSEG.

Adjusted profit per share of $1.58 beat estimates of $1.49.

Packaged food giant PepsiCo acquired Pizza Hut in 1977, but spun off the chain along with KFC and Taco Bell in 1997 to create a restaurants company, which took on the name Yum Brands in 2002.

A deadline to complete Pizza Hut‘s strategic review has not been set, and there was no assurance that the process would result in a transaction, Yum Brands said on Friday.