One of America’s most recognizable restaurant brands is preparing for a significant contraction in its domestic footprint as part of a broader strategic overhaul. Roughly 250 locations across the United States are set to close in the first half of 2026, marking one of the largest retrenchments in the brand’s modern history and underscoring mounting pressures within the quick-service restaurant sector.
The planned closures were disclosed during a recent earnings call, where company executives outlined an ongoing review of the chain’s positioning, performance, and long-term viability. The move follows several years of lagging sales growth compared with major competitors and reflects a growing willingness by parent company Yum Brands to pursue structural change — including the possibility of a sale.
According to financial disclosures, U.S. same-store sales declined 3% in the fourth quarter of 2025 and fell 5% for the full year, signaling that prior turnaround efforts have failed to gain traction. The upcoming closures are intended to address underperforming locations while management evaluates more sweeping options for the brand’s future.
“Hut Forward” and a Retrenchment Strategy
The U.S. shutdowns are part of a restructuring initiative internally referred to as “Hut Forward,” a program designed to stabilize near-term performance while laying the groundwork for potential long-term growth. The initiative includes refreshed marketing campaigns, modernization of technology systems, revisions to franchise agreements, and a one-time financial contribution from Yum Brands to support marketing efforts.
Company leadership described the program as a bridge rather than a full turnaround, acknowledging that deeper issues remain unresolved. The closures will specifically target underperforming stores, a decision framed as necessary to rationalize the existing footprint and improve overall unit economics.
While Yum Brands did not disclose an updated official count of U.S. locations in its most recent earnings release, regulatory filings from late 2025 indicated that approximately 32% of the chain’s global system — about 6,360 stores — were located in the United States. Closing 250 units would therefore represent roughly 4% of the U.S. system, a sizable contraction for a legacy quick-service brand.
Industry analysts note that the scale of the closures is comparable to Starbucks’ decision to shutter roughly 400 stores in a single round of closures in 2024, a move that was similarly framed as a strategic recalibration rather than a retreat from the market.
Strategic Review and Sale Possibility
The closures come as Yum Brands continues a formal review of strategic options for the chain, a process that began in late 2025. That review explicitly includes the possibility of selling the brand or restructuring it under a different ownership model, reflecting management’s assessment that the current structure may not be conducive to a successful turnaround.
Yum Brands CEO Chris Turner confirmed that the review remains active and is expected to conclude sometime in 2026. However, he declined to provide further details, citing the ongoing nature of the process.
“When the company announced the review, it acknowledged that a different ownership structure might be necessary to guide the brand through its next phase,” Turner said during the earnings call, emphasizing that no final decision has yet been made.
The review process has already proven costly. Yum Brands reported spending $36 million on the evaluation effort in 2025 alone, with $32 million of that total incurred in the fourth quarter. In addition, the company wrote off $5 million in franchise incentive assets associated with streamlining the U.S. store base in preparation for a potential transaction.
A Brand Falling Behind the Competition
Once the dominant name in American pizza delivery and dine-in dining, the brand has steadily lost ground to faster-growing rivals that have leaned heavily into digital ordering, streamlined menus, and delivery-first models. While competitors have posted steady gains, sales growth has remained elusive, particularly in the U.S. market.
The recent performance data suggests that challenges are structural rather than cyclical. Declining same-store sales point to weakening customer demand even as foodservice traffic has stabilized across much of the broader restaurant industry.
Analysts have long pointed to an aging store base, inconsistent franchise execution, and a brand identity caught between legacy dine-in roots and modern delivery expectations. While incremental updates have been made, leadership appears increasingly convinced that more fundamental change is required.
Global Footprint Shrinks Further
The U.S. closures are part of a broader contraction in the brand’s global system. Worldwide store count fell from 20,225 locations at the end of 2024 to 19,974 by the end of 2025, according to company filings.
A significant portion of that decline came from international markets, most notably Turkey. Early in 2025, Yum Brands terminated its master franchise agreement with the chain’s Turkish operator, leading to the closure of 254 locations in that market alone. Those shutdowns were described as necessary following disputes over operational and financial performance.
While international markets have historically been a growth engine for the brand, the Turkish exit highlights the risks inherent in master franchising arrangements and adds to the sense that the chain is undergoing a period of global retrenchment.
Industry Context: A Tough Environment for Legacy QSR Brands
The move reflects broader pressures facing established quick-service restaurant brands, particularly those with large, legacy footprints. Rising labor costs, higher input prices, and shifting consumer preferences have forced many operators to reassess their physical store networks.
In recent years, several major chains have pursued aggressive rationalization strategies, closing underperforming units while focusing investment on fewer, higher-performing locations. Investors have increasingly rewarded these moves, viewing them as signs of discipline rather than weakness.
Yum Brands’ own stock performance suggests cautious optimism among shareholders. While the brand under review continues to struggle, the parent company’s diversified portfolio — which includes faster-growing concepts — has helped cushion the impact.
What Comes Next
The first half of 2026 will be pivotal. As closures begin and the strategic review advances, Yum Brands will face mounting pressure to clarify the brand’s future — whether that means a sale, a restructuring, or a renewed commitment under its current ownership.
For franchisees, the uncertainty is acute. While underperforming stores are being culled, remaining operators are waiting to see whether a new ownership structure could bring clearer direction and renewed investment.
For consumers, the closures may mark the beginning of the end of a once-ubiquitous presence in American dining culture. Whether the brand can reinvent itself — or finds a new owner better positioned to do so — remains an open question.
What is increasingly clear, however, is that incremental fixes are no longer sufficient. The planned closures represent not just a cost-cutting measure, but a tacit acknowledgment that the brand’s long-running struggles demand decisive action.
Emily Johnson is a critically acclaimed essayist and novelist known for her thought-provoking works centered on feminism, women’s rights, and modern relationships. Born and raised in Portland, Oregon, Emily grew up with a deep love of books, often spending her afternoons at her local library. She went on to study literature and gender studies at UCLA, where she became deeply involved in activism and began publishing essays in campus journals. Her debut essay collection, Voices Unbound, struck a chord with readers nationwide for its fearless exploration of gender dynamics, identity, and the challenges faced by women in contemporary society. Emily later transitioned into fiction, writing novels that balance compelling storytelling with social commentary. Her protagonists are often strong, multidimensional women navigating love, ambition, and the struggles of everyday life, making her a favorite among readers who crave authentic, relatable narratives. Critics praise her ability to merge personal intimacy with universal themes. Off the page, Emily is an advocate for women in publishing, leading workshops that encourage young female writers to embrace their voices. She lives in Seattle with her partner and two rescue cats, where she continues to write, teach, and inspire a new generation of storytellers.
