Another 1950s Icon Faces the Axe: Yum Brands May Sell Pizza Hut

Pizza Hut could soon be the latest American dining icon to change hands, as parent company Yum Brands confirmed it is conducting a formal review of 'strategic alternatives' for the pizza chain, a move that could pave the way for a full or partial sale.

The announcement comes just a day after Denny's, another 1950s-era restaurant brand, was sold to an investor group and taken private.

For analysts, the timing underscores a broader shift in the restaurant industry, where legacy dine-in chains are being forced to adapt, or exit, amid changing consumer habits and growing competition from delivery-focused rivals.

Yum Brands, which also owns KFC, Taco Bell and Habit Burger Grill, said the review will explore how best to 'realise Pizza Hut's full value'.

In a press release, Chief Executive Chris Turner noted that while the chain retains strong international performance, its US operations continue to lag behind.

'The Pizza Hut team has been working hard to address business and category challenges; however, Pizza Hut's performance indicates the need to take additional action to help the brand realise its full value, which may be better executed outside of Yum Brands,' Turner said.

'To truly take advantage of the brand we've built and the opportunities ahead, we've made the decision to initiate a thorough review of strategic options.'

READ MORE: Denny's Sold, Pizza Hut Is Next As It Eyes Possible Sale in Major Industry Shake-Up

From Dine-In To Delivery: A Decades-Long Transformation

Founded in Wichita, Kansas, in 1958, Pizza Hut built its reputation on family-style dining and its signature red-roof restaurants, once a familiar sight across the US and the UK.

But the brand's traditional model struggled to keep pace with the rise of delivery-led chains such as Domino's, which have dominated the market through faster service and aggressive digital strategies.

In 2020, one of Pizza Hut's largest franchisees filed for bankruptcy protection, shuttering hundreds of locations. Since then, the company has shifted focus towards delivery and takeaway formats, but its US sales still fell 7% in the first nine months of this year, according to Yum's latest earnings report.

The chain now commands roughly 15.5% of the US pizza market, down from nearly 20% in 2019. In contrast, Domino's continues to expand, boasting more than 21,000 outlets globally.

Investor Optimism Despite Uncertainty

Despite the uncertainty surrounding Pizza Hut's future, investors reacted positively to Yum Brands' announcement.

The company's shares rose nearly 7% in afternoon trading on Tuesday, buoyed by strong third-quarter results from its other flagship brands, particularly KFC and Taco Bell.

The review could result in several outcomes, including a joint venture, a partial sale, or a full divestment of the Pizza Hut brand.

A sale would mark a significant reshaping of Yum Brands' portfolio, which has long centred around the trio of Pizza Hut, KFC, and Taco Bell — all originally spun off from PepsiCo in 1997.

An Uncertain Future For A Familiar Name

Pizza Hut's global reach remains formidable, with nearly 20,000 restaurants in over 100 countries. China now ranks as its second-largest market after the United States, and international sales were up 2% in the first nine months of 2025.

However, as consumers tighten spending and increasingly favour delivery aggregators, legacy dine-in brands like Pizza Hut and Denny's face mounting pressure to reinvent themselves or bow out of corporate ownership altogether.

Yum Brands has not set a deadline for completing the review, saying only that it intends to take the time necessary to ensure the best outcome for the brand.

For now, the question is whether Pizza Hut — once the world's leading pizza chain — can rediscover its edge in an era that has moved far beyond the red-roof restaurants of its 1950s past.