Pizza Hut has reported several consecutive quarters of falling same-store sales in the United States, which accounts for 42% of its global revenue. The downturn in its largest market has offset gains made in other regions.
“Pizza Hut’s performance indicates the need to take additional action to help the brand realise its full value, which may be better executed outside of Yum! Brands,” chief executive Chris Turner said on Tuesday. He added that the company is currently exploring “strategic options” for its pizza division.
In the latest quarter, sales at existing Pizza Hut locations dipped by 1%, continuing a trend of sluggish demand. The brand’s performance contrasts with the stronger results from Yum’s other chains. Taco Bell’s same-store sales climbed 7% in the last quarter, while KFC posted a 3% increase despite a softer US market.
Pizza Hut contributes around 11% of Yum’s total operating profit and operates about 20,000 outlets globally, including roughly 6,500 in the US. Yet, rising competition from rivals such as Domino’s and Papa John’s has intensified pressure on the brand. Domino’s recently reported a 6% increase in quarterly sales, driven by aggressive promotions.
Turner, who stepped into the CEO role last month, said Pizza Hut teams have been “working hard to address business and category challenges.” Yum! did not specify when a final decision on the chain’s future would be made.
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