Nan Fang Du Shi Bao·2025-11-06 23:14Core Viewpoint - Yum! Brands is initiating a strategic review of its Pizza Hut brand, which may include the potential sale of the business, indicating a need for additional actions to enhance its value [1][2]. Group 1: Strategic Review and Operations - The CEO of Yum! Brands, Chris Turner, stated that the performance of Pizza Hut necessitates further actions to realize its full value, which may be better executed outside of Yum! Brands [2]. - Yum! Brands has not set a deadline for the completion of the strategic review and does not intend to comment further unless deemed necessary [2]. - Yum! China operates Pizza Hut independently and confirmed that the strategic review will not affect its daily operations in China [1][2]. Group 2: Financial Performance - In Q3 2025, Pizza Hut accounted for 12.13% of Yum! Brands' total revenue, while KFC and Taco Bell represented 44.42% and 36.89%, respectively [3]. - Yum! China's revenue from Pizza Hut in Q3 2025 was 6.35 billion USD, reflecting a year-on-year growth of 3.25%, while system sales increased by 4% [5]. - In contrast, Yum! Brands reported a decline in system sales for Pizza Hut, with revenue of 240 million USD, a decrease of 0.22% year-on-year [4]. Group 3: Market Dynamics - Pizza Hut in the U.S. and Europe experienced negative growth in system sales, while other markets showed positive growth [4]. - Yum! China's Pizza Hut has seen a recovery in revenue since Q3 2024, attributed to strategic adjustments such as menu updates and the introduction of cost-effective store formats [5][6]. - The average transaction value for Pizza Hut has been declining, with a drop of 14%, 13%, and 13% in Q1 to Q3 of 2025, while same-store sales volume has shown a consistent increase of 17% [6].