Pizza Hut Is Shutting 250 Restaurants. Here's Why.

Core Insights - Yum! Brands is conducting a strategic review of Pizza Hut, which may include selling the brand due to declining same-store sales [1][1] - The company plans to close 250 out of 20,000 U.S. Pizza Hut locations in the first half of the year as part of this review [1][1] - Pizza Hut's core operating profit is projected to decline by 15% in the first quarter as Yum! Brands invests in marketing and other initiatives to boost sales [1][1] Financial Performance - Yum! Brands reported $2.5 billion in revenue, a 6% increase year-over-year, slightly below analyst expectations [1][1] - Adjusted earnings per share were approximately $1.73, aligning with consensus estimates [1][1] Market Context - Increased competition and consumer demand for value offerings have negatively impacted Pizza Hut's sales, which saw a 3% year-over-year decline in domestic same-store sales in the fourth quarter [1][1] - The brand experienced prior declines of 6% and 5% in same-store sales in earlier quarters of the year [1][1]