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 a formal review of potential options for the brand, which has faced challenges in a competitive pizza market.
Company Overview and Market Performance
Yum CEO Chris Turner highlighted Pizza Hut’s strengths, including its extensive global presence and strong growth in various markets. The brand operates nearly 20,000 stores across more than 100 countries.
- International sales increased by 2% in the first nine months of this year.
- China is Pizza Hut’s second-largest market outside the U.S.
- Almost half of Pizza Hut's sales come from the U.S., with approximately 6,500 stores.
Challenges in the U.S. Market
While international growth was steady, U.S. sales dropped by 7% during the same period. Pizza Hut has struggled with an outdated business model, originally based on large dine-in locations, at a time when consumers increasingly prefer fast pickup and delivery options.
Setbacks and Market Share Decline
In 2020, a major Pizza Hut franchisee filed for bankruptcy and closed 300 stores, reflecting some of the brand’s difficulties. According to Technomic, a food service consulting firm, Pizza Hut’s share of U.S. pizza chain sales fell from 19.4% in 2019 to 15.5%.
"Pizza Hut has many strengths, including a global footprint and strong growth in many markets." — Yum CEO Chris Turner
Author’s summary: Yum Brands is reviewing options for Pizza Hut amid falling U.S. sales and market challenges, despite its global reach and growth in international markets.
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