The downturn in the pizza restaurant industry will continue into 2026, with major restaurant chains closing hundreds of stores, making it harder for consumers to find their favorite treats.
Pizzerias have faced severe economic headwinds over the past two years, with multiple chains facing intense competition, rising labor and food costs and high lease rates, requiring several companies to reorganize out of court, close stores and, in some cases, file for bankruptcy.
Seattle-based Mod Pizza will operate about 500 stores by 2024, but economic challenges forced it to close 27 stores and sell its assets to Chatsworth, Calif.-based Elite Restaurant Group.
The restaurant chain has not addressed its economic issues and continues to close stores, with 448 locations listed on its website as of February 4.
Other smaller pizza chains filed for bankruptcy in 2025, including Bertucci’s Restaurant, which filed for Chapter 11 protection on April 24, 2025, and Backdraughts, which filed for bankruptcy on July 23, 2025.
Major pizza restaurant franchisees also experienced financial difficulties and filed for bankruptcy protection last year, including Domino’s operator People First Pizza Inc. (filing for Chapter 11 on March 26, 2025) and Little Caesars franchisee Red Door Pizza LLC (filing on July 15, 2025).
Domino’s is the largest pizza chain in the United States, with approximately 7,090 pizzas sold as of the third quarter of 2025, according to “Domino’s 101: Fun Facts” on the company’s website.
Little Caesars claims to be the third-largest pizza chain in the United States, but does not list all of its locations. According to LocationsCloud, the chain appears to have more than 4,200 locations in the United States.
Pizza Hut’s website says it has more than 6,700 stores in the United States, but the chain will soon shrink.
Pizza Hut, a large pizza restaurant chain, said it will close 250 underperforming restaurants in the first half of 2026 as part of its Hut Forward plan. Ranjith Roy, chief financial officer of parent company Yum! Brands, said on the company’s fourth quarter 2025 earnings call on February 4.
However, the company reported that Pizza Hut International’s same-store sales rose 1%, with strong performance in the Middle East, Latin America and Asia.
The Hut Forward program consists of a dynamic marketing plan that includes a one-time Yum! Marketing support contributions, modernization of certain technology and franchise agreements and targeted closure of underperforming units, Roy said on the earnings call.
However, Pizza Hut opened more than 440 stores globally in the fourth quarter and will have nearly 1,200 stores in 65 countries by 2025.
During an earlier earnings call, Yum! Brands CEO Christopher Turner said Pizza Hut’s strategic review, which was launched in November 2025, was proceeding as planned and the review of options would be completed by 2026.
“Given the nature of this process, we are unable to disclose further details regarding the strategic review at this time,” Turner said, according to Seeking Alpha.
More closures:
In addition to Pizza Hut’s disappointing earnings news, Roy said the company’s overall fourth-quarter performance was strong, with system sales up 5%, unit sales up 3%, and same-store sales up 3%.
This year, eh! System sales increased by 5%, with Taco Bell increasing by 8% and KFC increasing by 6%.
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Domino’s Pizza, 7,090 locations
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Pizza Hut, 6,700 locations
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Little Caesars, 4,200 locations
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This article was originally published by TheStreet on February 4, 2026, and first appeared in the Restaurant section. Click here to add TheStreet as your preferred source.