Pizza Hut has announced its plans to close 250 locations across the United States.
Yum! Brands, which owns Pizza Hut said the closures, which only affects underperforming restaurants is intended to strengthen Pizza Hut's overall performance.
The company, which also owns KFC and Taco Bell operates nearly 20,000 Pizza Huts worldwide.
Chris Turner, Chief Executive Officer, Yum! Brands Inc. said in a press release, “The Pizza Hut team has been working hard to address business and category challenges; however, Pizza Hut’s performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum! Brands."
Turner continued, “To truly take advantage of the brand we’ve built and the opportunities ahead, we’ve made the decision to initiate a thorough review of strategic options.”
According to the company's earning release, Pizza Hut suffered a decline in same-store sales for its US locations, dropping 3 percent for the fourth quarter and 5 percent for the year.
The company also started a formal review last November to explore all strategic options for Pizza Hut, including potentially selling the chain and this review is expected to be finished sometime this year.
However, the company did not provide details about exactly which Pizza Hut restaurants will be closed.
