Pizza Hut plans to close about 250 underperforming U.S. restaurants during the first half of 2026 as parent Yum! Brands Inc. (NYSE:YUM) continues a strategic review of the pizza chain.

Yum disclosed the planned closures during its fiscal 2025 fourth-quarter earnings call. The company is framing the move as part of "Hut Forward," a targeted program meant to improve near-term performance.

The closures represent a small portion of Pizza Hut's global footprint, according to CFO Ranjith Roy.

Yum first announced the strategic review in November and said the process remains on track, with the company expecting to complete its evaluation this year.

Management did not offer specifics on potential outcomes, citing the ongoing nature of the work.

Strategic Review And Outlook

Alongside store closures, Hut Forward includes steps to align stakeholders around a more vibrant marketing plan, modernization of select technology, and updates to certain franchise agreements. Yum also plans to provide a one-time contribution to support marketing efforts tied to the initiative.

Pizza Hut posted a 1% decline in same-store sales globally for both the fourth quarter and full year, according to management.

Meanwhile, Yum continues to see momentum in Pizza Hut International. Same-store sales rose 1% for the quarter and year, supported by strength in the Middle East, Latin America and Asia.

Yum expects Pizza Hut unit count to decline in the first half of 2026, even as the chain targets strong gross openings later in the year.

Yum reaffirmed its long-term growth algorithm, targeting 5% unit growth and 7% system sales growth, excluding foreign exchange.

The company also aims for at least 8% core operating profit growth over time, on average.

YUM Price Action: Yum! Brands shares are trading higher by 1.82% to $162.47 at last check Thursday.

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