Pizza Hut struggles to reverse troubling consumer trend 

It is no secret that Pizza Hut, which is owned by Yum Brands  (YUM) , has been the victim of a restaurant-industry trend that has gained steam over the past few years.

In Yum Brands’ first-quarter earnings report for 2025, it revealed that while same-store sales for Taco Bell and KFC increased during the quarter, Pizza Hut struggled to excite consumers.

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Pizza Hut’s same-store sales declined by 2% year-over-year. Specifically in the U.S., the pizza chain’s system sales shrank by 7%.

Related: Domino’s Pizza suffers a startling loss as customers switch gears

Pizza Hut’s sales have been struggling for several financial quarters, despite the pizza chain’s bold attempts to win back customers.

In October 2023, Pizza Hut launched its $7 Deal Lovers Menu, where customers can choose two or more items “for just $7 each.” The deal is a revamped version of Pizza Hut’s previous $5 Deal Lover’s Menu, and it was introduced after the pizza chain quietly increased some of its prices earlier that year.

In February this year, Pizza Hut introduced its Ultimate Hut Bundle, in which customers can order two medium pizzas, any eight boneless wings, sticks, and two dipping sauces starting at $24.99.

By April, Pizza Hut announced that it was bringing back Cheesy Bites Pizza, a fan-favorite menu item, for a limited time. It also introduced three new exclusive dipping sauces: Chipotle Ranch, Ultimate Ranch, and Pepperoni Ranch.

Consumers are avoiding pizza 

During an earnings call on April 30, Yum Brands CEO David Gibbs said Pizza Hut’s same-store sales performance in the U.S. was “disappointing.” He flagged that the pizza chain was operating in an “intense competitive environment.”

“In the U.S., sales started soft in January and improved through February and March with the last few weeks showing sequential gains in revenue and transaction growth,” said Gibbs. “The U.S. business faced an intense competitive environment. To drive momentum, Pizza Hut U.S. leaned into group occasions with its stuffed crust and wings promotion and Ultimate Hut Bundle, both of which increased check and attracted new users.”

Gibbs added that Pizza Hut isn’t the only fast-food pizza chain that is struggling to win back customers.

Related: Pizza Hut menu brings back a classic fan-favorite item

“Pizza Hut is in a tough category right now in QSR (quick-service restaurants) in the U.S., and certainly the pizza category with everybody reporting negative sales is pressured,” said Gibbs. “But we’ve obviously seen Pizza Hut have significant growth in years past when they get the offerings right for consumers, like with melts and value.”

Earlier this week, Domino’s Pizza revealed that its U.S. same-store sales declined by 0.5% year-over-year during the first quarter of 2025. Also, Papa Johns saw its comparable sales in the U.S. dip by roughly 4% year-over-year during the fourth quarter of 2024.

Both pizza chains have flagged that they have seen lower foot traffic in their stores. They have also noticed that consumers are pulling away from having their orders delivered and are instead opting to pick them up in person in order to save money.

“Delivery is a tougher value right now in this value-conscious world,” said Domino’s Pizza CEO Russell Weiner during an earnings call in February. “And so, the choice isn’t going to another restaurant. Most of the time, it’s eating at home.”

Pizza Hut switches gears in order to win back customers

Many consumers have been avoiding fast-food restaurants due to their high prices, which have increased by roughly 47% over the past decade.

A survey from Datassential late last year revealed that 46% of U.S. consumers have scaled back their spending on restaurant meals and dining out due to inflation and the increased cost of living. Also, 31% said they are opting to cook food at home in order to save money.

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Amid this concerning consumer trend, Pizza Hut has been considering a major change to its restaurants that it believes could attract customers back into its stores.

Last December, Pizza Hut announced that it was piloting a new restaurant design that features “a guest-facing pizza making station,” self-service kiosks and a drive-thru that contains a new “Hut ‘N Go” menu that sells pre-made food.

During the earnings call on April 30, Gibbs said that Pizza Hut will focus on its “3D strategy” to attract customers into its stores going forward. This strategy includes “distinctive offerings for group occasions, dependable everyday value through platforms such as the $7 deal levers, and disruptive innovation to gain share in a competitive market.”

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