When it comes to value for customers, Pizza Hut’s messaging fell short in the second quarter of 2025, said Yum! Brands’ outgoing CEO, David Gibbs, in an August 5 earnings call with investors.
Pizza Hut, which is owned by Yum! Brands, reported a 5% decline in same-store U.S. sales for the quarter ending June 30. That’s a repeat of Q1, which also saw a 5% drop in same-store sales compared to the same quarter of the previous year.
In the earnings call, Gibbs focused mostly on the continued success of the company’s top performing brand—Taco Bell—but he acknowledged that Pizza Hut has some catching up to do.
“In the U.S., innovation with Cheesy Bites and Ranch Lover’s Flights mixed well with existing consumers,” Gibbs said, “but an insufficient value message amid a competitive value landscape resulted in transaction softness.”
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“The team has learned from this,” Gibbs continued, “and going forward, the U.S. team is establishing compelling value propositions.” That includes a Tuesday carryout offer called 2-Buck-Tuesdays, which launched on July 8, and Wing Wednesdays, a two-for one deal on wing orders for the middle of the week.
As rivals like Domino’s, Little Caesars and Papa Johns keep rolling out special low-price offers, Pizza Hut has struggled to keep up in recent quarters. But the 2-Buck-Tuesdays promo has been a bright spot. The brand saw personal pizzas “flying off the shelves” last month, the company has said.
With that deal, customers pay just $2 for a personal one-topping pan pizza on Tuesdays. The offer was extended into August, but it’s unclear how long it will be available.
Melissa Friebe, chief marketing officer for Pizza Hut U.S., has hailed the promotion as a huge success. “The response has been nothing short of incredible, and we are even selling out of personal pan pizzas at thousands of restaurants across the country,” she told USA Today last month.
There’s no reason to believe that the value wars among quick-service and fast food chains will ease up anytime soon.
“Clearly, this is…a softer consumer environment all around the world where value matters,” Gibbs told investors. “Value never doesn’t matter, but it’s [of] particular importance in this environment. And what we’re seeing around the world is we can win when we…do value the right way.”
In his closing remarks, Gibbs also passed the torch to his successor, Christopher Lee Turner, who will take over the role of CEO as Gibbs steps down after six years in the position. Turner has been with Yum! Brands for six years, and attracting him to the company “was a real coup,” Gibbs said. “He’s had a massive impact on the company as CFO. Nobody is better positioned to take over this company than Chris.”
