Yum! Brands launches strategic review of Pizza Hut as Q3 profit rises

Yum! Brands has initiated a formal strategic review of its Pizza Hut business alongside reporting third quarter (Q3) results.

The owner of KFC, Taco Bell, Pizza Hut and Habit Burger Grill said it has appointed Goldman Sachs and Barclays as financial advisers to evaluate options for Pizza Hut.

Chris Turner, CEO of Yum! Brands, said: “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 realise its full value, which may be better executed outside of Yum! Brands,”

“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,” Turner added.

Yum Brands reported a rise in Q3 profit, with net income increasing to $397m, or $1.41 per share, from $382 million, or $1.35 per share, a year earlier.

On an adjusted basis, excluding costs tied to the strategic review of Pizza Hut and other items, earnings came in at $1.58 per share.

For the quarter ended 30 September 2025, the company’s revenue rose 8% year-on-year to $1.97bn.

Worldwide system sales rose 5% excluding foreign currency translation, led by Taco Bell at 9% and KFC at 6%. Unit count grew 3%, including 1,131 gross new units in the quarter.

Digital transactions across the group, spanning mobile, delivery and kiosk orders, reached $10bn systemwide and represented around 60% of orders.

Group same-store sales grew 3%, driven by gains at Taco Bell and KFC.

Taco Bell delivered a 7% increase in same-store sales. KFC posted a 3% rise. In China, KFC’s largest market, system sales advanced 6%. In the US, KFC’s same-store sales were up 2%.

However, Pizza Hut was the only division to report a decline as same-store sales fell 1% overall, weighed down by a 7% drop at US locations open at least a year.

Commenting on the results, Turner said: "Going forward, my three priorities for driving growth will be staying relevant with the next generation of consumers, leveraging our global scale to strengthen franchisees’ store-level economics, and expanding Byte across more restaurants worldwide.

“I’ve been proud to be a part of the unrivalled culture and talent that define the Yum! system, and it’s an honour to lead this global business. With a strong foundation in place, we are well positioned to build on our momentum and deliver sustained value for all our stakeholders."

In September 2025, Yum! Brands disclosed a series of leadership appointments to enhance its operational capabilities and support long-term value creation across its global operations.

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"Yum! Brands launches strategic review of Pizza Hut as Q3 profit rises" was originally created and published by Verdict Food Service, a GlobalData owned brand.

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