AI-Summary – News For Tomorrow
Pizza Hut is struggling, with sales lagging behind Yum Brands’ other units like Taco Bell and KFC International for seven consecutive quarters. While Yum Brands overall beat Q3 estimates due to strong performances from Taco Bell and KFC, Pizza Hut’s underperformance is concerning. Pizza Hut constitutes only 11% of Yum Brands’ operating profits, far less than Taco Bell. Industry leader Domino’s attributes its success to promotions, new menu items, and delivery partnerships. Pizza Hut’s value offerings have been insufficient in a competitive market. Yum Brands is conducting a strategic review of Pizza Hut, but there’s no guarantee of a transaction.
News summary provided by Gemini AI.
Pizza Hut‘s sales have lagged Yum Brands’ other prominent units, Taco Bell and KFC International, falling for seven consecutive quarters. In comparison, Taco Bell last reported negative comparable sales in June 2020.
Yum Brands’ shares were up about 2% in premarket trading after the company banked on 7% growth in Taco Bell U.S. same-store sales and 3% growth in KFC International to beat third quarter estimates.
Pizza Hut accounts for about 11% of Yum Brands’ operating profits, compared with about 38% for Taco Bell’s U.S. business.
Industry giant Domino’s Pizza DPZ.O said in October that although fast-food traffic was slowing, consumers were still seeking out its pizzas, helped by promotions and new menu items, as well as its delivery partnerships with third-party aggregators such as Doordash DASH.O and UberEats UBER.N.
While Pizza Hut has also offered value deals such as various personal pizzas for $5 and $2, “an insufficient value message amid a competitive value landscape resulted in transaction softness,” company veteran and former CEO David Gibbs said in August.
Yum Brands’ worldwide same-store sales grew 3% during the quarter ended September 30, 2025 edging past estimates of a 2.68% increase, according to data compiled by LSEG.
Adjusted profit per share of $1.58 beat estimates of $1.49.
Packaged food giant PepsiCo acquired Pizza Hut in 1977, but spun off the chain along with KFC and Taco Bell in 1997 to create a restaurants company, which took on the name Yum Brands in 2002.
A deadline to complete Pizza Hut‘s strategic review has not been set, and there was no assurance that the process would result in a transaction, Yum Brands said on Friday.
