Pizza Hut is planning to close 250 underperforming U.S. locations in the first half of 2026. This decision is part of a broader strategic review by its parent company, Yum! Brands.

The closures were confirmed during a recent earnings call as a component of the “Hut Forward” turnaround plan. This initiative focuses on revitalizing marketing, modernizing technology, and updating franchise agreements to stabilize the brand.

Yum! Brands emphasized that these 250 closures represent a very small portion of Pizza Hut’s global estate of about 20,000 restaurants. The company stated this move is the right strategic step following its review.

The decision follows a period of declining sales for Pizza Hut in the U.S. market. In the fourth quarter of 2025, its domestic same-store sales fell 3%, contrasting with growth at sibling chains like Taco Bell.

This struggle prompted Yum! Brands to begin a formal strategic review in late 2025. At that time, the CEO acknowledged performance issues, leading to speculation about a potential future sale or spin-off of the chain.

Pizza Hut joins other chains, including Noodles & Company and Wendy’s, in closing underperforming locations in 2026. This industry trend shifts resources toward stronger stores and digital expansion.

For Pizza Hut, the goal is to invest more in technology, delivery, and modernized locations. The company aims to reshape the brand to better compete, promising fewer but stronger restaurants for customers in the future.