Liputan6.com, Jakarta - Fast-food giant Pizza Hut is back in the spotlight after a series of store closure announcements in the United States, with previous significant waves in 2020 and 2024, as well as plans for more extensive closures through 2026.
These closure decisions are based on various factors, ranging from suboptimal store performance, intense competition in the fast-food pizza industry, to the financial problems facing several major franchisees.
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This development indicates serious challenges facing Pizza Hut in the US domestic market, despite its parent company, Yum Brands, remaining committed to investing and expanding its global reach.
Pizza Hut Plans Store Closures Through 2026
Pizza Hut plans to close approximately 250 stores in the United States in the first half of 2026, as reported by CNN.
These closures are part of an ongoing strategic review by Yum Brands, Pizza Hut's parent company, known as the "Hut Forward" program.
The stores targeted for closure are those deemed underperforming and not meeting expected operational standards.
This move is expected to affect approximately 3% to 4% of Pizza Hut's total operating stores in the US.
These closures come amidst a decline in same-store sales in the US, which fell 3% in the fourth quarter of 2025 and 5% for the entire year of 2025.
This fact indicates that Pizza Hut has experienced nine consecutive quarters of declining same-store sales, including 10 consecutive quarters of flat or negative results.
Pizza Hut's unit volume was also reported to be the lowest among the four major pizza chains: Domino's, Little Caesars, and Papa John's.
EYM Pizza L.P. Franchisee Bankruptcy in 2024
In July 2024, Pizza Hut franchisee EYM Pizza L.P. filed for Chapter 11 bankruptcy protection, which immediately triggered the closure of 15 stores in Northwest Indiana by June 2024.
As part of its financial restructuring, EYM Pizza L.P. planned to sell all 127 of its stores across five states: Illinois, Indiana, Wisconsin, South Carolina, and Georgia.
EYM's bankruptcy came after Pizza Hut sued the franchisee for failing to pay royalties on time. EYM had previously sued Pizza Hut for breach of fiduciary duty, but the lawsuit was dismissed by the court.
EYM Pizza L.P. reportedly owes approximately $23 million, including more than $2 million to Pizza Hut Corporate and more than $20 million to Manufacturers Bank.
EYM's store performance showed a 10% decline in same-store sales between 2019 and 2023, compared to a 7% increase for Pizza Hut as a whole over the same period.
Previous Massive Closures and Common Reasons
Before the latest wave of closures, Pizza Hut also faced significant closures in 2020, when more than 300 stores closed due to the bankruptcy of NPC International, one of Pizza Hut's largest franchisees at the time.
This pattern of closures highlights some common reasons that continue to plague Pizza Hut's operations in the US.
These reasons include poor store performance or "underperforming," consistently declining same-store sales, and intense competition in the fast-casual pizza market.
The industry is filled with strong players like Domino's, Little Caesars, and Papa John's, which continue to innovate and gain market share.
Interestingly, amid store closures in the US, Pizza Hut continues to demonstrate strong global expansion, with more than 440 new store openings by the fourth quarter of 2025 and nearly 1,200 stores throughout 2025 across 65 countries.