Pizza Hut’s guardian firm says it is contemplating promoting the chain

Pizza Hut might quickly be up on the market.

Yum Manufacturers, Pizza Hut’s guardian firm, stated Tuesday it is conducting a proper evaluation of choices for the model, which has struggled to compete in a crowded pizza market.

Yum CEO Chris Turner stated Pizza Hut has many strengths, together with a worldwide footprint and powerful development in lots of markets. Pizza Hut has practically 20,000 shops in additional than 100 nations, and its worldwide gross sales have been up 2% within the first 9 months of this yr. China is its second-largest market outdoors the U.S.

However Pizza Hut will get practically half its gross sales from the U.S., the place it has round 6,500 shops, and U.S. gross sales fell 7% in the identical interval. Pizza Hut was lengthy saddled with massive, outdated dine-in eating places at a time when customers needed quick pickup and supply.

In 2020, one in every of Pizza Hut’s largest franchisees filed for chapter safety and closed 300 shops. Pizza Hut now controls 15.5% of U.S. pizza chain gross sales, down from 19.4% in 2019, in keeping with Technomic, a meals service consulting firm.

“The Pizza Hut workforce has been working laborious to deal with enterprise and class challenges; nonetheless, Pizza Hut’s efficiency signifies the necessity to take extra motion to assist the model notice its full worth, which can be higher executed outdoors of Yum Manufacturers,” Turner stated in an announcement. “To really make the most of the model we have constructed and the alternatives forward, we have made the choice to provoke a radical evaluation of strategic choices.”

Yum has not set a deadline for the completion of the evaluation. The corporate stated it won’t make any additional feedback on the evaluation.

Yum Manufacturers shares have been up practically 7% in early afternoon buying and selling Tuesday. The corporate additionally owns KFC, Taco Bell and Behavior Burger & Grill. Yum stated Tuesday that its third-quarter income rose 8% because of sturdy gross sales at each KFC and Taco Bell.

Pizza Hut was based in 1958 in Wichita, Kansas, by two brothers who borrowed $600 from their mom to open the shop. They selected the title as a result of their signal solely had room for eight letters.

Pizza Hut’s acquainted pink roof debuted in 1969 and by 1971 it was the highest pizza chain on the planet by gross sales. PepsiCo acquired Pizza Hut in 1977 however spun off its restaurant division – which turned Yum Manufacturers – in 1997.

Domino’s, with its concentrate on supply and carryout pizza, has since turn into the world’s largest pizza chain, with 21,750 shops.

The information of Pizza Hut’s unsure future comes the day after one other Fifties-era dine-in icon, Denny’s, introduced it was being bought to an investor group and brought non-public. Like Pizza Hut, Denny’s has additionally struggled with prospects’ shift to supply and rising competitors in informal eating choices.