This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Dive Brief: Papa Johns, which posted same-store sales declines of 5% in North America during Q4 2025, plans to close 300 underperforming restaurants — mostly franchisee owned — across the region, Ravi Thanawala, Papa Johns CFO and North America president, said Thursday during an earnings call. These restaurants don’t meet brand expectations and don’t have ...

Investment Rating - The report indicates a stable investment environment for the restaurant sector, with a focus on brand value growth and resilience despite economic pressures [20][23]. Core Insights - The global restaurant sector's brand value reached a record $190.1 billion in 2026, with McDonald's leading at $42.6 billion, marking a 5% increase [10][30]. - Chick-fil-A emerged as the fastest-growing brand, with a 44% increase in brand value to $8.1 billion, driven by strong revenue and expansion [36]. - Haidilao retained its title as the strongest brand with a Brand Strength Index (BSI) score of 89.5/100, despite a slight decline in its score [49]. Sector Overview - The restaurant sector has shown resilience, with a collective brand value increase of approximately 20% since 2015, driven by changing consumer habits towards takeout and delivery [20][21]. - Technology investments, including AI-enabled forecasting and digital ordering, have become essential for growth, particularly in the US market [22]. - There is a noted disconnect between brand value growth and Brand Strength Index scores, indicating pressures on pricing and consumer trust [23]. Valuation Analysis - The top 10 restaurant brands remain stable, with minor shifts in rankings based on brand value growth rates rather than fundamental changes in competitive positions [25][34]. - McDonald's, Starbucks, and KFC maintain their top three positions, with brand values of $42.6 billion, $37 billion, and $16.5 billion respectively [30][31]. - Subway and Chick-fil-A showed significant growth, with Subway's brand value increasing by 18% and Chick-fil-A's by 44% [28][36]. Brand Strength Analysis - Haidilao is recognized as the strongest restaurant brand globally, followed closely by Greggs and McDonald's, with BSI scores of 89.5, 88.2, and 88.1 respectively [52][54]. - The report highlights the importance of local relevance and consumer perceptions in driving brand strength, as seen with Jollibee's performance in the Philippines [58]. Sustainability Analysis - Sustainability is increasingly influencing consumer choices, contributing to 6.4% of consideration in the restaurant sector [64]. - Brands like Chili's and Mixue are noted for their strong sustainability perceptions, which are linked to higher quality and credibility among consumers [65]. Brand Value Ranking - The report lists the top 10 most valuable restaurant brands for 2026, with McDonald's, Starbucks, and KFC leading the rankings [30][71]. - Notable newcomers include Mixue, valued at $4.6 billion, reflecting a strong focus on affordability and rapid expansion [44].

If Domino’s earnings on Monday prove anything, it’s that people are still eating pizza—even if fast food sales, in general, are slumping. Most Read from Fast Company “There seems to be a narrative out there that pizza is a challenged and declining category,” Domino’s CEO Russell Weiner said in an earnings call on Monday. “That is just not true, looking back to 2019, you’ll find a category that has generally grown approximately 1-2% each year, including last year 2025.” Weiner did, however, acknowledge t ...

Core Viewpoint - Pizza Hut's South Korean operations are being transferred to a newly established investment vehicle, PH Korea, as part of a court-led rehabilitation process aimed at reducing debt and maintaining the brand [1][2]. Group 1: Transaction Details - The acquisition of Pizza Hut's Korean business by PH Korea is valued at Won11 billion ($7.6 million) [1]. - The transaction is being conducted through a court-supervised mechanism, allowing essential business assets to be transferred prior to the final approval of the restructuring plan [2]. - The current Pizza Hut Korea unit will utilize the sale proceeds to repay creditors before being liquidated [2]. Group 2: Financial Recovery for Creditors - Approximately Won7 billion from the sale proceeds is expected to be distributed to rehabilitation creditors, providing an estimated recovery of around 13% of their claims [3]. - In contrast, creditors would have received less than 4% if the business transfer had not occurred [3]. Group 3: Background and Challenges - The restructuring effort follows a court-led rehabilitation application by the existing entity in November 2024, due to ongoing disputes with franchisees and increasing financial pressures [3]. - The Supreme Court's ruling requiring the return of Won21.5 billion in "margin franchise fees" has increased total rehabilitation claims to about Won61.5 billion [4]. Group 4: Future Plans and Operations - PH Korea plans to implement changes to its profit structure, logistics, and marketing, as well as simplify franchise agreements to stabilize operations [4]. - The restructuring plan does not currently involve store closures or large-scale redundancies [5]. - The process will proceed subject to judicial approval of the asset transfer and confirmation of the rehabilitation plan [5].

Core Insights - Yum Brands plans to close 250 Pizza Hut locations in the U.S., representing about 3% of its total footprint, as part of its "Hut Forward" strategy aimed at improving performance and brand value [1][2] Company Strategy - The closures are described as "targeted" and focus on underperforming units, alongside increased marketing support and updates to technology and franchise agreements [2] - Yum Brands is conducting a review of strategic options for the Pizza Hut brand, which may include a potential sale [3][4] Financial Performance - Yum Brands reported a net income of $535 million for the fourth quarter, an increase from $423 million the previous year, with strong performances from Taco Bell and KFC [5] - Pizza Hut's same-store sales fell by 1% in the fourth quarter, contrasting with Taco Bell's 7% and KFC's 3% increases [6] Company Overview - Yum Brands operates over 62,000 restaurants in more than 155 countries, with 98% being franchise-owned [5] - The company has seen its shares rise by over 20% in the past year [5]

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]

Core Insights - Yum! Brands announced the closure of approximately 250 underperforming Pizza Hut locations across the United States during the first half of 2026 [1] Company Actions - The decision to close these locations is part of a strategic move to enhance overall performance and profitability within the Pizza Hut brand [1]

Group 1 - Pizza Hut will close approximately 3% of its U.S. locations, equating to around 250 stores, in the first half of 2026 due to underperformance and competition from Domino's Pizza [1] - In contrast, Taco Bell and KFC reported strong sales growth, with Taco Bell's same-store sales increasing by 7% for the quarter and KFC achieving a 1% increase while opening its 30,000th international restaurant [4] - Yum Brands reported fourth-quarter revenue of $2.51 billion, surpassing expectations of $2.45 billion, although it missed earnings per share (EPS) estimates, reporting $1.73 adjusted compared to the expected $1.77 [3] Group 2 - The company opened over 440 new Pizza Hut restaurants globally in the fourth quarter of 2025 and nearly 1,200 in total for the year across 65 countries [2] - CEO Chris Turner highlighted the strong fundamentals at KFC and Taco Bell, emphasizing a strategic focus on long-term growth through the "Raise the Bar" initiative [5] - Shares of Yum Brands experienced a slight decline of less than 1% in afternoon trading but have increased by 6% year-to-date [5]

Core Insights - Pizza Hut is closing 250 locations, representing about 3% of its US footprint, as part of a strategic review by its parent company, Yum! Brands, which may consider selling the chain in the future [1][2] - The closures are part of a turnaround strategy named "Hut Forward," which includes marketing investments and technology upgrades [2] - Pizza Hut has faced challenges in competing with rivals like Domino's, with a 5% drop in US same-store sales in 2025 and a 3% decline in the fourth quarter, indicating that turnaround efforts have not yet been effective [3][6] Company Performance - Taco Bell has shown strong performance with a 7% increase in US same-store sales in the fourth quarter, attributed to new menu items appealing to a diverse customer base [6] - KFC has also shown signs of improvement, with a 1% increase in US same-store sales in the fourth quarter, as it attempts to catch up with competitors [6][7]

Core Insights - Yum! Brands, Inc. reported mixed quarterly results with earnings falling short of expectations despite an increase in revenue [1] - Strength in Taco Bell and KFC contributed to systemwide growth and unit expansion, although restaurant margins decreased year over year [1] Quarterly Metrics - Worldwide system sales increased by 5% excluding currency impacts and the extra 53rd week comparison, driven by Taco Bell's 8% growth and KFC's 6% growth [2] - Operating profit for the quarter was $738 million, up from $657 million a year ago, while the company restaurant margin decreased to 16% from 17.9% year over year [2] Unit Expansion - The company opened 1,814 gross new units, achieving a year-over-year unit growth of 3%, with digital system sales exceeding $11 billion, accounting for nearly 60% of total sales [3] - KFC Division opened 1,132 new restaurants, while Taco Bell Division added 228 new restaurants during the quarter [3] - Yum! Brands ended the quarter with cash and equivalents totaling $709 million [3] Management Commentary - The CFO highlighted strong topline results, double-digit profit growth, a significant Taco Bell store acquisition, and a strategic review for the Pizza Hut brand, expressing optimism for growth opportunities ahead [4] Dividend Announcement - The company approved a dividend of 75 cents per share, marking a 6% increase, with distribution scheduled for March 6 [5] Long-term Outlook - Yum! Brands reaffirmed its long-term growth targets, aiming for 5% unit growth and 7% system sales growth, excluding foreign exchange, along with an average core operating profit growth of at least 8% over time [6]