Yum Brands, Pizza Hut’s parent company, is currently reviewing strategic options for the pizza chain, which may include a potential sale. Despite strong international sales and a global presence with nearly 20,000 stores, the brand has struggled, especially in the US market, with a 7% sales decrease in the first nine months of the year. CEO Chris Turner believes Pizza Hut’s full value might be better realized outside Yum Brands. The company has not set a deadline for the review and will not provide further comments.
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AP News reports Denny’s has agreed to be acquired by a group of investors in a deal valued at $620 million, including debt. The acquisition, approved unanimously by the board, will see Denny’s taken private with shareholders receiving $6.25 per share. The purchasers include TriArtisan Capital Advisors, Treville Capital, and Yadav Enterprises. The deal is expected to close in the first quarter of 2026 if accepted by shareholders.
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Contrary to Donald Trump’s claims, Washington D.C. restaurants are actually suffering due to the increased presence of federal forces. Restaurant owners report significantly decreased foot traffic and reservations, leading to extensions of events like Restaurant Week. Many restaurant owners and workers feel that Trump’s actions are actively harming the city’s economy, creating an atmosphere of fear particularly impacting immigrant communities and the tourism industry. This climate has resulted in event cancellations, business closures, and a concerning domino effect on restaurants across the country.
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McDonald’s reported its worst US quarterly sales since the second quarter of 2020, exceeding projected declines and highlighting the impact of a turbulent economic climate on consumer spending. This drop, primarily driven by reduced customer traffic among middle- and lower-income groups, reflects a broader trend seen across several restaurant chains. While high-income customer traffic remained stable, the company noted increased anti-American sentiment in certain international markets. Despite these challenges, McDonald’s maintained its full-year financial outlook, citing positive promotional results and value offerings.
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Facing financial difficulties and rising costs, Hooters, known for its waitstaff and wings, filed for Chapter 11 bankruptcy. The company plans to sell its 100 company-owned restaurants to two franchisee groups, aiming for a swift exit from bankruptcy within 90-120 days. This restructuring, involving a founder-led buyout, intends to return the brand to its roots and improve its financial stability. While business operations continue, Hooters is evaluating its operational footprint, potentially leading to further location closures.
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Just Eat Takeaway, the European meal delivery giant, is selling its US subsidiary Grubhub to Wonder, a restaurant chain led by former Walmart executive Marc Lore, for $650 million. This divestiture comes four years after Just Eat acquired Grubhub for $7.3 billion, seeking to expand its reach into the lucrative US market. The sale marks a retreat for Just Eat, which faced pressure from investors following the decline in pandemic-fueled food delivery demand. Just Eat believes the deal will accelerate its growth and provide Grubhub with a suitable future under Wonder’s leadership. The transaction is expected to close in early 2025, subject to regulatory approval.
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TGI Fridays has filed for Chapter 11 bankruptcy protection, blaming the impact of the Covid-19 pandemic. The company intends to use the bankruptcy process to explore alternatives to ensure its long-term viability. The process will affect the parent company, which operates 39 restaurants, but not its franchisees. The company secured funding to allow all locations to continue operation while it navigates bankruptcy. The chain, which began in 1965, experienced significant financial struggles from the pandemic and never fully recovered.
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John Q. Hosedrinker