U.S. same-store sales for Pizza Hut remain in negative territory, but the second quarter of 2024 saw some improvement nonetheless.
In its quarterly report, the company said same-store sales were down 1% versus minus 6% in the first quarter of the year. Internationally, Pizza Hut’s same-store sales declined by 4%.
The chain said it has reaped benefits from a pair of value deals, and 7 seems to be the lucky number. Last October, the company unveiled the $7 Deal Lover’s Menu that features pizzas, pastas, Melts, breadsticks and desserts. Customers can order two or more items for $7 apiece. Meanwhile, the My Hut Box deal, launched in May 2024, lets customers choose between Melts or a two-topping personal pan pizza, along with fries or boneless wings, for $6.99, just a penny shy of $7.
“In the U.S., momentum accelerated throughout the quarter with an increase in weekly-per-restaurant average transactions attributable to a number of value-based promotions and the launch of My Hut Box,” David Gibbs, CEO of Pizza Hut parent company Yum! Brands, said in an earnings call with investors.
Yum! Brands CFO Christopher Turner noted that Pizza Hut opened 236 units across 30 countries in the last quarter. Meanwhile, about 210 stores have temporarily closed in the Middle East, Malaysia and Indonesia, due to the ongoing conflict in that region. “Pizza Hut’s year-over-year unit growth is trending higher from this time last year for several of our largest markets, including China and Japan, which is offsetting closures in the U.S. and the conflict-related slowing of development in Indonesia and Malaysia,” Turner said.
Pizza Hut also expects to implement its AI-powered Dragontail restaurant management system at nearly every U.S. store by the end of the year. “As an example of Dragontail’s impact,” Turner said, “in the first 1,000 Pizza Hut U.S. stores to implement the technology, we have measured a 7% increase in overall consumer satisfaction due to hotter and fresher pizzas, leading to improved consumer frequency.”
In June, Pizza Hut announced it was introducing a “fresh era” of menu development, starting with a Chicago-inspired tavern-style pizza and its “biggest toppings menu overhaul in a decade.” New toppings include Spicy Marinara Sauce, Pesto Sauce Swirl, Chicken Sausage, Fresh Diced Garlic, Grape Tomatoes, Caramelized Onions, Fire-Roasted Peppers and Crispy Cupped Pepperoni.