New York
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Pizza Hut is closing hundreds of locations throughout the United States whereas its mother or father firm continues a strategic evaluate of the embattled model.
Yum! Brands, which additionally owns Taco Bell and KFC, revealed in Wednesday’s earnings name that 250 “underperforming” Pizza Huts are closing within the first half of this 12 months, which quantities to roughly 3% of its US footprint.
A selected record of locations wasn’t launched.
The firm announced in November it had launched a “formal review of strategic options” for Pizza Hut, together with a potential sale. No additional extra data was launched Wednesday apart from that Yum! expects the evaluate to be accomplished this 12 months.
Pizza Hut has persistently struggled in a tough pizza landscape, particularly in opposition to chief rival Domino’s Pizza.
For Pizza Hut, it was one other dismal quarter, with one other decline in same-store gross sales for its US locations, dropping 3%. The chain’s try to give attention to worth, namely a new $5 pizza, hasn’t resonated.
Meanwhile, Taco Bell continued to be a standout. Same-store gross sales soared 7% for the quarter as its constant launch of new menu gadgets lured in a spread of folks, together with high-income customers, youthful eaters and households.
KFC additionally continued its sluggish turnaround within the US, with same-store gross sales inching 1% greater. The rooster chain has introduced on Taco Bell executives to focus menu innovation because it seems to regain floor it has misplaced to Raising Cane’s and Chick-fil-A.
Shares of Yum! (YUM) have jumped 6% to date this 12 months.