Pizza Hut
Pizza Hut's US system is shrinking, many older dine-in 'Red Roof' buildings have been closed, and large franchisees have gone bankrupt in recent years. Leases are franchisee-signed, so landlords should be cautious and focus on real estate value and operator strength; Yum! (BB+) explored strategic options for the brand in 2025.
- US units
- 6,307
- FY2025
- 3Y net growth
- −3.9%
- vs. FY2022
- Credit rating
- BB+
- Sub-investment grade
- Typical term
- 10–20 yr
- Franchisee-signed NNN (absolute NNN common)
- Model
- Franchised
- Subsidiary of Yum! Brands
Unit count
Pizza Hut in the news
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Pizza Hut net lease FAQ
What is Pizza Hut's credit rating?
Pizza Hut is rated BB+ (Yum! Brands), which is below investment grade. Check the lease to confirm whether the rated entity is the actual guarantor.
How many Pizza Hut locations are there in the US?
Pizza Hut reported about 6,307 US locations as of FY2025. That is −3.9% versus 6,561 in FY2022.
What does a typical Pizza Hut net lease look like?
Lease type: Franchisee-signed NNN (absolute NNN common). Initial term: 10–20 yr. Rent increases: 10% every 5 yrs. These are market-typical terms; actual deals vary by vintage, location and whether the lease is corporate or franchisee-signed.
Is Pizza Hut corporate or franchised?
Operating model: Franchised (~99% franchised). Pizza Hut is part of Yum! Brands. For net lease investors this determines whether rent is backed by the corporate parent or by a franchisee.