New York
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Pizza Hut is closing hundreds of locations across the United States while its parent company continues a strategic review of the embattled brand.
Yum! Brands, which also owns Taco Bell and KFC, revealed in Wednesday’s earnings call that 250 “underperforming” Pizza Huts are closing in the first half of this year, which amounts to roughly 3% of its US footprint.
A specific list of locations wasn’t released.
The company announced in November it had launched a “formal review of strategic options” for Pizza Hut, including a possible sale. No further additional information was released Wednesday other than that Yum! expects the review to be completed this year.
Pizza Hut has consistently struggled in a tough pizza landscape, especially against chief rival Domino’s Pizza.
For Pizza Hut, it was another dismal quarter, with another decline in same-store sales for its US locations, dropping 3%. The chain’s attempt to focus on value, namely a new $5 pizza, hasn’t resonated.
Meanwhile, Taco Bell continued to be a standout. Same-store sales soared 7% for the quarter as its consistent release of new menu items lured in a variety of people, including high-income consumers, younger eaters and families.
KFC also continued its slow turnaround in the US, with same-store sales inching 1% higher. The chicken chain has brought on Taco Bell executives to focus menu innovation as it looks to regain ground it has lost to Raising Cane’s and Chick-fil-A.
Shares of Yum! (YUM) have jumped 6% so far this year.
