Restaurant India News: Yum Brands to Shut 250 Pizza Hut Stores, KFC, Taco Bell Fuel Record Expansion

Yum Brands Inc. released its financial results for the fourth quarter and full year ended Dec. 31, 2025, highlighting significant profit growth and a record-breaking year for development at its KFC and Taco Bell divisions.

In an earning call, the company said it will close 250 underperforming Pizza Hut locations in the US as part of its "Hut Forward" strategy.

The closures come as Pizza Hut's store sales in the region declined by 3% in the fourth quarter of 2025.

"The 250 stores that we mentioned is a very small portion of the 20,000-unit estate that Pizza Hut has globally," Ranjith Roy, CFO, Yum Brands said during the earnings call. "And it is the right answer for the brand as we move through the strategic review."

Pizza Hut did open 443 new restaurants during the quarter and 1,184 gross new restaurants across 65 countries in 2025.

The company reported a robust finish to the fiscal year, driven by double-digit profit growth in the final quarter:

"Yum delivered another year of outstanding results at KFC and Taco Bell with our fundamentals stronger than ever at both brands," Chris Turner, CEO, said in a company press release. "Taco Bell again gained market share with standout same-store sales performance, and KFC delivered another record-breaking year of unit development.”

KFC opened 1,132 gross new restaurants during the quarter and 2,986 gross new restaurants across 105 countries for the year. Taco Bell opened 228 gross new restaurants during the quarter and 376 gross new restaurants across 27 countries for the year. Taco Bell U.S. system sales grew 2%.

"In the fourth quarter, Yum! demonstrated its unique ability to achieve strong performance while navigating a complex environment," added Roy in the press release.