One-Fifth of USA Pizza Hut Locations to Be Sold or Closed by Bankrupt Franchisee

Long-term troubles with Yum! Brands' (NYSE: YUM) Pizza Hut chain came to a head today in the announced sale or closure of roughly 20% of its U.S. restaurants, according to Business Insider. NPC International, a franchisee operating 1,227 Pizza Huts along with 400 Wendy's restaurants, filed for Chapter 11 bankruptcy a month and a half ago. Now, the company is closing 300 Pizza Hut restaurants permanently in accordance with an agreement with Yum!, while putting the remainder of its franchised locations up for sale.

Pizza Hut's woes began long before coronavirus appeared on the economic horizon. In its bankruptcy protection filing, NPC International placed the blame squarely on Yum! itself. The franchisee stated, "Deteriorating brand recognition has been further exacerbated by decreased menu innovation and the lack of a clear, long-term strategy by the Pizza Hut Franchisor to address the brand issues to provide a clear and differentiated identity."

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Source Fool.com