LOUISVILLE, Kentucky: As Yum Brands reassesses the future of one of its most recognisable chains, Pizza Hut is preparing to close 250 restaurants across the United States in the first half of this year, a move aimed at pruning underperforming locations.

Yum said that the closures would focus on weaker Pizza Hut outlets within its U.S. system. The brand currently operates more than 6,000 locations in the United States.

The decision comes as Yum weighs strategic options for Pizza Hut. In November, the Louisville, Kentucky-based company said it had begun a formal review of the brand, which has struggled in its home market amid outdated stores and intensifying competition. Pizza Hut's U.S. same-store sales, a key measure that tracks revenue at locations open at least a year, fell five percent last year, Yum said.

Competition in the U.S. pizza market has been stiff. Rival Domino's, the world's largest pizza company, has not yet reported full-year results, but posted a 2.7 percent rise in U.S. same-store sales over the first nine months of last year.

Outside the United States, Pizza Hut has fared better. Yum said international same-store sales rose 1 percent last year, driven by growth in Asia, the Middle East, and Latin America. China remains Pizza Hut's second-largest market outside the U.S., accounting for 19 percent of the chain's total sales.

Yum Chief Executive Chris Turner said that the company expects to complete its review of options for Pizza Hut sometime this year. He declined to provide further updates on the process.

Globally, Pizza Hut ended 2025 with 19,974 restaurants, 251 fewer than a year earlier. While the chain opened nearly 1,200 new locations across 65 countries last year, closures ultimately outpaced those additions. Yum said Pizza Hut plans further international openings in 2026, but did not offer specific details.

Founded in 1958 in Wichita, Kansas, Pizza Hut was acquired by PepsiCo in 1977. PepsiCo later spun off its restaurant division in 1997, creating Yum Brands. Today, Yum also owns KFC, Taco Bell, and Habit Burger & Grill.

The planned U.S. closures underline the challenges Pizza Hut faces in regaining momentum in its most significant and most competitive market, even as Yum considers whether a sale or other strategic move could revive the brand.