Sou Hu Cai Jing·2025-12-25 06:18Core Viewpoint - Pizza Hut is facing significant controversy regarding the quality and authenticity of its steak offerings, which has led to public criticism and regulatory scrutiny. Concurrently, the brand is undergoing a major market adjustment, shifting its focus from pizza to other food categories like barbecue and burgers, raising questions about its future direction and competitive strategy [2][3][4]. Group 1: Market Performance - Pizza Hut's global sales have been declining, with a 1% year-over-year decrease in sales for the first three quarters of this year. Same-store sales have dropped for eight consecutive quarters, with the largest market, the U.S., experiencing a 6% decline in same-store sales in Q3, and market share shrinking from 22.6% in 2019 to 18.7% in 2024 [3]. - In the UK, Pizza Hut has entered bankruptcy management, resulting in the permanent closure of 68 dine-in restaurants [3]. - In contrast, Pizza Hut is expanding in the Chinese market, having added 158 new stores this year, bringing the total to 4,173, with plans to exceed 6,000 stores by 2028 [3]. Group 2: Financial Performance - In Q3 2023, Pizza Hut's revenue in China reached $635 million, a 3% increase year-over-year, while profit was $57 million, up 7% [3]. - The average transaction value has decreased significantly, dropping from 110 yuan in 2019 to 70 yuan in 2024, a decline of 36% [4]. - The introduction of lower-priced menu items, such as a single-person pizza set starting at 19.9 yuan, indicates a strategic shift towards more affordable offerings [4]. Group 3: Strategic Adjustments - Pizza Hut is diversifying its menu by introducing barbecue and burger options, which may overlap with offerings from its sister brand, KFC, raising concerns about potential internal competition [6][7]. - The brand's efforts to adapt to local market trends reflect a need for strategic realignment, as it seeks to enhance its profitability within Yum China, where KFC contributes approximately 75% of the revenue [7][8]. - The ongoing controversy regarding the "small print" in advertising may hinder Pizza Hut's ability to successfully implement its new strategies and maintain consumer trust [9].