Yum Brands is looking to divest from struggling Pizza Hut

Pizza Hut owner Yum Brands announced Tuesday that it is exploring strategic options for the struggling pizza chain, including a possible sale, joint venture, or divestiture, after overall same-store sales fell 1% in the third quarter, including 6% decline in the US.

In contrast, Yum’s other major brands performed better, Taco Bell’s same-store sales rose 7% and KFC’s climbed 3% during the same period.

Yum CEO Chris Turner said that despite efforts to improve performance, Pizza Hut needs to take additional action to “realize its full value, which may be better executed outside of Yum! Brands.”

Once a dominant dine-in brand, Pizza Hut has struggled to adapt to the shift toward delivery and takeout. It is also facing a slump due to customers pulling back on fast food spending amid inflation and a weak job market.

Its US pizza market share has fallen from 22.6% in 2019 to 18.7% in 2024.

Yum’s review comes amid a broader industry trend
Recently, Starbucks sold a majority stake in its China business, Jack in the Box offloaded Del Taco, and Krispy Kreme sold its stake in Insomnia Cookies to refocus on core growth.