Yum! Brands Inc. (NYSE:YUM) said last week that it is exploring a potential sale of Pizza Hut, one of America’s most iconic pizza chains.
CEO Addresses Brand Woes
“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 realize its full value, which may be better executed outside of Yum! Brands,” Yum! Brands Chief Executive Chris Turner said in a Nov. 4 statement.
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This comes alongside the company’s Q3 earnings report on Nov. 4, which said that the fast-food chain's same-store sales dropped 1% during the period. Pizza Hut's overall system sales were flat to slightly down during Q3 2025, with system sales of $3.2 billion declining 1% excluding foreign exchange effects, according to the report.
He said in the statement that management is reviewing strategic options for the struggling pizza chain, including a complete sale of the unit. Yum! Brands has retained Goldman Sachs (NYSE:GS) and Barclays (NYSE:BCS) as financial advisors to evaluate potential deals and guide the strategic review process.
For Yum! Brands overall, system sales grew 5% year-over-year during Q3, driven primarily by 9% growth at Taco Bell and 6% at KFC. The company reported total revenue of $1.98 billion for the quarter, up 8% year-over-year, and net income of $397 million, up 4%. Despite Pizza Hut’s slight decline in same-store sales and system sales, Yum! Brands’ overall sales performance was positive due to strong results from its other major brand divisions, according to the report.
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Gen Z Strategy Takes Center Stage
Yum! Brands is pushing to capture the Gen Z market, then-CEO David Gibbs said during the company’s Q2 earnings call on Aug. 5. He discussed Pizza Hut and KFC, but his remarks primarily focused on restaurant openings overseas. Gibbs, who handed over the reins to Turner last month, expressed confidence in the company’s overall innovation strategy at the time.
Several initiatives targeting younger demographics including Taco Bell’s Live Más Café model, which centers on customizable drinks, Gibbs highlighted on the call. Such specialty concepts increased sales, Gibbs said, as the company's chains double down on Gen Z-focused spinoffs as part of their broader growth strategy.
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Gibbs said that a Live Más test store experienced “a significant increase in transactions while more beverage users are visiting the café and choosing to dine in.” Taco Bell announced in March that it would launch twice as many new menu items in 2025 as the year before, with the chain emphasizing limited-time offerings to build consumer excitement and drive foot traffic to its locations.
From Pizza Hut's Sit-Down Restaurants to Takeout Only
Pizza Hut was founded in 1958 and built its reputation on sit-down family restaurants that featured the chain’s once-famous salad bar. The chain began scaling back its large-scale restaurant formats in the early 2000s and now primarily operates take-out-only stores, Business Insider reported.
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