Pizza Hut’s U.S. same-store sales declined 5% compared to the first quarter of last year, its parent company, Yum! Brands, announced today. Worldwide, same-store sales dropped 2% in Q1 2025.
Yum! Brands noted that the chain’s operating profit growth was “negatively impacted in the quarter by 7 percentage points due to expenses associated with four franchise entities that are transitioning to new ownership and by 3 percentage points due to timing of technology spending within Franchise advertising and other service expenses.”
Pizza Hut transferred ownership of 77 restaurants to new owners in early April after a prolonged legal battle with EYM Group, a Pizza Hut franchisee that declared bankruptcy last summer.
In an April 30 earnings call, Yum! Brands CEO David Gibbs said Pizza Hut’s sales “started soft in January and improved through February and March, with the last few weeks showing sequential gains in revenue and transaction growth. The U.S. business faced an intense competitive environment.”
But Gibbs noted that Pizza Hut U.S. “leaned into group occasions with its Stuffed Crust and Wings promotion and Ultimate Hut Bundle, both of which increased check [average] and attracted new users.” During the Super Bowl, he added, the Ultimate Hut bundle led to Pizza Hut’s “highest-ever digital sales per restaurant.”
“Looking ahead,” Gibbs added, “Pizza Hut U.S. will focus on its 3D strategy: distinctive offerings for group occasions; dependable everyday value through platforms such as the $7 [Deal Lover’s Menu] levers; and disruptive innovation to gain share in a competitive market.”
Pizza Hut’s chief rival, Domino’s, had its own problems in the first quarter of this year. The No. 1 pizza chain reported a dip of 0.5% in same-store sales—slightly below its expectations. Domino’s announced this week that it has laid off some corporate employees below the executive level to create a “faster, more efficient structure” matching its Hungry for MORE strategy.
Pizza is a “tough category” in the U.S. right now, Gibbs told investors. “But we’ve obviously seen Pizza Hut have significant growth in years past…when they get the offerings right for consumers, like with Melts and value. I know Carl Laredo, who just assumed the leadership role of Pizza Hut U.S. last year around this time, has got big plans to grow the brand and accelerate expansion in the U.S.”
Gibbs announced in March that he plans to step down as CEO of Yum! Brands in the first quarter of 2026.
