Louisville-based Yum Brands, the parent company of Pizza Hut, announced Tuesday that it is formally reviewing strategic options for the pizza chain. The move comes as Pizza Hut faces increased competition and challenges in the rapidly evolving restaurant industry.

During an investor conference, Yum Brands executives stated that the review will explore a range of possibilities for the Pizza Hut brand. While the company did not specify what those options might include, potential outcomes could involve a sale of the chain, restructuring, or other strategic adjustments.

Pizza Hut has been grappling with declining sales and market share in recent years. The pizza delivery and dine-in market has become increasingly saturated with competitors, including national chains like Domino's and Little Caesars, as well as a proliferation of independent pizzerias and online food delivery services. Yum Brands, which also owns KFC and Taco Bell, has been working to revitalize Pizza Hut’s performance, but the formal review suggests a more significant shift may be considered.

Yum Brands’ decision to evaluate options for Pizza Hut reflects broader trends in the restaurant industry, where companies are constantly reassessing their portfolios and seeking ways to optimize performance. The formal review process is expected to take several months, and the company has not provided a timeline for a potential decision. Investors and industry analysts will be closely watching developments as the process unfolds.