Pizza Hut to close 250 U.S. stores
Pizza Hut announced it will close 250 underperforming U.S. stores in 2026 as part of a strategic review by parent company Yum! brand.
Louisville, Kentucky-based Papa John’s announced during its earnings call on Thursday, February 26, that it will close approximately 300 stores across the United States by the end of 2027.
Ravi Tanawala, Papa John’s chief financial officer and president of North America, said the company expects to close about 200 stores in 2026. Tanawala said the stores closing are primarily franchised stores that are “not meeting brand expectations or lack a clear path to sustainable financial improvement.”
He added that these locations generate “negative four-wall” income and are more than 10 years old.
“We are taking steps to better align our corporate and field resources with our transformation priorities and optimize spans and layers within our organization,” Papa John’s CEO Todd Penegor said during the call regarding the store closures.
It is currently unclear which stores the pizza chain plans to close or when. USA TODAY has reached out to Papa John’s for comment.
In 2025, Papa John’s embarked on several initiatives to improve the company, including the appointment of new company leaders, fleet and cost restructuring, organizational changes, and innovation.
Papa John’s reported in its earnings call that revenue from North American stores in 2025 will be down 2% from the previous year. Revenue at company-operated restaurants was down 3%, and revenue at franchised restaurants was down 2%.
The pizza chain’s global sales in 2025 increased by 1% from the previous year. This sales growth was supported by international markets, where sales increased by 5%.
Mr Thanawala, who previously managed the company’s international division, said this store closure strategy was similar to the one he implemented in the UK, resulting in a 17% increase in average sales per store.
“Selected strategic closures will allow our North American franchisees to drive operational excellence in their core restaurants and direct resources to accelerate growth in priority markets,” he said, adding that the company also reduced its workforce by 7%.
The company has 3,523 locations in the United States at the end of 2025, according to its financial statements.
Closed in 2026
The series of closures is similar to that of pizza delivery competitor Pizza Hut, which plans to close 250 “unprofitable” stores in the U.S. in the first half of 2026.
At parent company Yum!’s financial results conference on February 4th. Brands Chief Financial Officer Ranjith Roy said the move is part of the company’s “Hat Forward” strategy, which includes “vigorous marketing, technology modernization and franchise agreements.”
Pizza Hut’s U.S. store sales fell 3% in the fourth quarter of 2025.
Multiple fast-food and fast-casual chain restaurants across the country have announced plans to downsize since the beginning of the year, with some saying they intend to focus resources on better-performing locations.
Contributor: Olivia Evans, Louisville Courier-Journal
