Pizza Hut’s Parent Company Considers Selling the Chain
Pizza Hut may soon be put up for sale. Yum Brands, the parent company of Pizza Hut, announced on Tuesday that it is conducting a formal review of options for the brand amid growing challenges in a competitive pizza market.
Brand Strengths and Market Presence
Yum CEO Chris Turner highlighted Pizza Hut’s strengths, including its extensive global presence and consistent growth in several markets.
- Pizza Hut operates nearly 20,000 stores across more than 100 countries.
- International sales increased by 2% during the first nine months of this year.
- China is its second-largest market outside the United States.
Challenges in the U.S. Market
Despite its international growth, Pizza Hut faces difficulties in the U.S., which accounts for almost half of its sales with around 6,500 stores.
- U.S. sales declined by 7% in the first nine months of the year.
- Pizza Hut’s market share in the U.S. has dropped from 19.4% in 2019 to 15.5%, according to Technomic, a food service consulting firm.
- Historically, the brand was burdened by large, outdated dine-in restaurants while consumer preferences shifted towards fast pickup and delivery options.
- In 2020, one of Pizza Hut’s largest franchisees filed for bankruptcy and closed 300 stores.
"Pizza Hut has many strengths, including a global footprint and strong growth in many markets." — Yum CEO Chris Turner
Photo Description
Pizza Hut location in Taunton, Massachusetts, as seen on July 9, 2015. (AP photo)
Summary
Yum Brands is evaluating strategic options for Pizza Hut, a global chain with strong international sales but facing significant challenges and declining market share in the U.S.