Pizza Hut is closing 250 U.S. locations in 2026 due to declining sales and ongoing competition.

Pizza Hut is closing 250 underperforming U.S. locations in the first half of 2026, about 3% of its domestic footprint, as parent company Yum! Brands continues a strategic review that may include a potential sale. The closures follow seven consecutive quarters of declining sales, a 3% same-store sales drop in the latest quarter, and ongoing challenges against competitors like Domino’s. Despite promotional efforts such as a $5 pizza, Pizza Hut’s performance lags behind Yum! Brands’ other chains, with Taco Bell reporting a 7% sales increase and KFC a 1% rise, driven by new leadership and menu innovation. Yum! Brands’ stock has risen 6% in 2026. The review is expected to conclude by year-end.