Kentucky-based Yum! Brands considers sale of one of its iconic restaurant chains
Kentucky-based Fortune 500 company Yum! Brands is considering selling its Pizza Hut business.
As part of its earnings call Tuesday, Yum! initiated a formal review of strategic options for Pizza Hut and said in a news release the intent is for the restaurant chain to “reach its full potential for the benefit of its franchisees, consumers, and employees and to maximize value for Yum! shareholders.”
“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,” Yum! CEO Chris Turner said in the news release.
“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,” he said.
On the earnings call, Turner, who took the leadership position Oct. 1, suggested one of those options is to sell the Pizza Hut brand, and according to the company’s third-quarter results, Yum! has already spent $4 million in third-party advising for the strategic review.
Based in Louisville, Yum! Brands and its subsidiaries KFC, Taco Bell, Pizza Hut and Habit Burger & Grill have a total of 62,000 restaurants in more than 155 countries.
Pizza Hut was the only major brand during the quarter to see its operating profit decline, along with system sales and same-store sales growth compared to the same period last year, according to the company’s reported results. System sales are revenue generated from restaurants under the Yum! umbrella, including franchises, and same-store sales are those specific to a brand in the portfolio, like Pizza Hut.
The company didn’t impose a deadline on itself for completing a review of its options for the future of Pizza Hut. The brand’s next earnings release and analyst call is scheduled for Feb. 4, 2026.
According to the quarterly results, Taco Bell led the company’s 5% worldwide system sales growth for the quarter, followed closely by KFC.
The company reported third-quarter net income of $397 million, up from $382 million over the same period last year.
The quarterly report also shows the company has spent $20 million year-to-date on relocating its KFC headquarters. Those additional expenses include severance for employees who did not relocate and for consultant fees, according to the filing.
Earlier in the year, when the fried chicken restaurant chain said it was leaving Louisville for Plano, Texas, Yum! forecast the move of 100 KFC corporate employees would cost approximately $7 million. The relocation was meant to combine the KFC headquarters with Pizza Hut’s.
The brand said Oct. 30 it would lease several floors in an office tower in Downtown Louisville for 10 years after it donated its vacated KFC property to Jefferson County Public Schools. Around 550 Yum! Brand employees are expected to move into the tower early next year.
.JPG)