"In the U.S., sales started soft in January and improved through February and March," CEO David Gibbs said about Pizza Hut on the company's conference call. "With the last few weeks showing sequential gains in revenue and transaction growth, the U.S. business faced an intense competitive environment to drive momentum." Other factors driving Pizza Hut's sales decline were expenses associated with transitioning stores from four franchise entities to new ownership as well as timing of technology spending within franchise advertising and other services expenses. In Q1 2025, Yum Brands opened 751 new stores across 68 countries. KFC led the way with 528 openings, Pizza Hut opened 198 new locations and Taco Bell added 24 gross units.