Yum Brands explores options for Pizza Hut after sales slump

STORY: Yum Brands says it’s exploring options for its struggling Pizza Hut chain, even as strong demand at its other brands helped drive upbeat quarterly results.Pizza Hut’s sales have fallen for seven straight quarters, trailing Yum Brands' other prominent restaurant chains, Taco Bell and KFC.The company’s new CEO, Chris Turner, said Pizza Hut’s “full value” may be better realized outside of Yum Brands.Several quarters of price hikes at restaurants, sticky inflation and economic uncertainty have forced consumers to become more wary about dining out.However, pizzas are still viewed as a budget-friendly option.Competitor Domino’s has seen stronger demand, helped by new menu items and delivery deals with DoorDash and UberEats.Pizza Hut has tried its own value offers, but former CEO David Gibbs admitted in August that they weren’t enough to stand out in a crowded market.The restaurant still operates nearly 20,000 restaurants globally, contributing about 11% of Yum’s profits, compared to 36% from Taco Bell’s U.S. business.Analysts say selling or spinning off Pizza Hut could leave Yum anchored to its stronger Taco Bell and KFC brands.The company says there’s no set timeline for Pizza Hut’s strategic review.Shares of Yum Brands rose more than 6% in Tuesday afternoon trading.

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