Pizza Hut revenue has declined by 7 per cent to stand at Rs 5,065 million, with restaurant Ebitda of negative 3.3 per cent in the last fiscal year
Sapphire Foods India, the operator of KFC, Pizza Hut and Taco Bell, has said that its Pizza Hut business in the country is facing headwinds arising out of low consumption and high competition, resulting in negative same-store sales growth (SSSG) across regions barring Tamil Nadu.
The company said in its annual report for 2025-26 that Pizza Hut revenue declined by 7 per cent and stood at Rs 5,065 million, with restaurant Ebitda of negative 3.3 per cent. The company opened seven restaurants during the year (341 total restaurants).
“In TN, we delivered double-digit delta in SSSG and restaurant Ebitda margin as compared to the rest of our regions. TN’s superior performance is a result of consistent execution of our template of dine-in-forward omnichannel restaurant backed with sustained marketing investment and product innovation,” the company added.
Sanjay Purohit, Sapphire Foods India Whole-Time Director and Group Chief Executive Officer (CEO), said that for Pizza Hut, operating as a strong number two brand in a highly competitive category, the opportunity lies in gaining market share.
“Our consumers rate us higher through competition on product quality and dine-in experience, and we have complemented this with compelling value offerings and strong delivery performance. However, unlocking growth requires us to shift perceptions among users of competing brands, which is a process that requires sustained marketing investment to build top-of-mind awareness and consideration,” he added.
Pizza Hut Sale
Yum Brands has entered into definitive agreements to sell Pizza Hut for USD 2.7 billion in the aggregate, subject to certain purchase price adjustments. Pizza Hut, excluding Mainland China, will be acquired by LongRange Capital.
Pizza Hut China will be acquired by Yum China Holdings, the company said in an official statement. Following a comprehensive review of strategic options for Pizza Hut that commenced in November 2025, Yum’s leadership team and board of directors determined the sale provides the strongest path to maximise shareholder value.
The company added that it will also provide Pizza Hut an ownership structure tailored to its distinct markets, competitive strengths and long-term priorities under leadership with significant relevant QSR experience.
“These transactions enable Yum to be a more focused company that continues to leverage scale, technology and talent to accelerate our raising the Bar priorities and deliver sustained value for our stakeholders. Under LongRange and Yum China, Pizza Hut will be well-positioned for future growth with ownership that brings deep expertise in the restaurant industry,” stated Chris Turner, Chief Executive Officer, Yum Brands.
The official statement noted that Yum Brands and Yum China remain fully committed to a strong partnership that unlocks growth in their joint businesses going forward. The companies have agreed to certain financial incentives that will generate value for both companies’ shareholders should KFC China’s future system sales growth rates accelerate.
