Pizza Hut’s Parent Company Considers Selling the Chain
Pizza Hut might soon be put up for sale. Yum Brands, the parent company of Pizza Hut, announced Tuesday that it is undertaking a formal review of strategic options for the brand. The decision comes as Pizza Hut faces challenges competing within a saturated pizza market.
Strengths and Market Presence
Yum CEO Chris Turner highlighted Pizza Hut’s many advantages, including its extensive global reach and strong growth in several markets.
- Nearly 20,000 locations worldwide across more than 100 countries
- International sales increased by 2% during the first nine months of the current year
- China ranks as the brand’s second-largest market outside the U.S.
Challenges in the U.S. Market
Despite its international success, Pizza Hut relies heavily on the U.S. market, which accounts for almost half of its sales. The chain operates about 6,500 stores in the U.S., where sales declined by 7% over the same period.
The brand has traditionally operated large dine-in restaurants, which became less appealing as consumer preferences shifted toward faster pickup and delivery options. In 2020, a major Pizza Hut franchisee filed for bankruptcy protection, closing 300 stores.
Market Share Decline
Pizza Hut currently holds a 15.5% share of the U.S. pizza chain market, a decrease from 19.4% in 2019, according to Technomic, a food service consulting firm.
"Pizza Hut has many strengths, including a global footprint and strong growth in many markets."
Author’s summary: Despite its global reach and growth in key markets, Pizza Hut faces sales declines and shifting consumer habits in the U.S., prompting Yum Brands to consider selling the chain.
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