Pizza Hut's Potential Sale by Parent Company Yum Brands
Pizza Hut may soon be put up for sale as Yum Brands, its parent company, announced a formal review of possible options for the pizza chain. The brand has faced challenges competing within a saturated pizza market.
Brand Strengths and Market Presence
According to Yum CEO Chris Turner, Pizza Hut has notable advantages, such as a vast global presence and strong growth in several regions. The chain operates nearly 20,000 stores across more than 100 countries.
“Pizza Hut has many strengths, including a global footprint and strong growth in many markets.” — Chris Turner, Yum CEO
International sales grew by 2% during the first nine months of the year, with China ranking as the second-largest market outside the United States.
Challenges in the U.S. Market
- Nearly half of Pizza Hut’s sales come from the U.S., where it has approximately 6,500 stores.
- U.S. sales declined by 7% in the first nine months of the year.
- The chain struggled due to its reliance on large, outdated dine-in locations while consumer demand shifted toward fast pickup and delivery.
- In 2020, a major franchisee filed for bankruptcy, leading to the closure of 300 stores.
Pizza Hut currently holds 15.5% of U.S. pizza chain sales, a decrease from 19.4% in 2019, as reported by Technomic, a food service consulting firm.
Summary
Pizza Hut’s parent company is exploring strategic options amid declining U.S. sales and changing consumer preferences, despite strong international growth and a vast global network.
Author’s summary: Yum Brands is reevaluating Pizza Hut’s future, balancing its global strengths against falling U.S. sales and evolving market demands.