Will focusing on delivery and carry-out locations while closing underperforming sit-down restaurants yield faster growth in the long run? That is what Pizza Hut is hoping for.
Yum! Brands executives said Pizza Hut will likely see domestic locations decrease by nearly 500 stores over the next two years.
They will close underperforming dine in restaurants and swaps them out for modern express stores.
“This will ultimately strengthen the Pizza Hut business in the U.S. and set it up for faster long-term growth”, stated David W. Gibbs, president and chief operating and financial officer.
Their U.S. store count could drop to as low as 7,000 locations over the next 24 months.
In 2018, Pizza Hut closed its fiscal year with 7,482 U.S. restaurants.
The closures come as the chain has been struggling with domestic same-store sales, however in the U.S., same-stores sales rose 2%.
Yum CEO Greg Creed said he was pleased with the results, which was driven by value promotions.
They plan to accelerate the transition of our Pizza Hut U.S. estate to a more modern delivery and carryout focused asset base.
Pizza Hut continues to grow internationally with more than 16,800 restaurants around the world.