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Denny's sold off and Pizza Hut on the block as restaurant chains face reckoning READ MORE: Sad decline of America's favorite steakhouse escalates By BEN SHIMKUS, US CONSUMER REPORTER Published: 19:17 GMT, 4 November 2025 | Updated: 19:37 GMT, 4 November 2025 America’s sit-down restaurant chains are in trouble. Now, Denny's and Pizza Hut are seeking million–dollar parachutes to catch their freefall. Both chains are facing the same storm battering restaurants across America — soaring food prices, budget-conscious diners, and younger eaters swapping pizzas and fried food for grain bowls and greens. Denny’s, famous for its all-day breakfasts, agreed a $322 million deal on Tuesday to go private. Private equity firm TriArtisan Capital Advisors and one of Denny’s biggest franchisees, Yadav Enterprises, will take control of the 72–year–old chain and its 1,300 locations. It comes after years of slowing pancake and bacon orders and the closure of 180 restaurants this year. Yesterday, the company announced that sales had dropped by nearly three percent in its US restaurants. Meanwhile, Yum Brands — owner of Pizza Hut — is looking to sell off its 6,700 pizzerias after a 6 percent drop in pizza sales. Domino’s and Papa John’s are eating its lunch. Yum Brands' other chains –– including Taco Bell, KFC, and Habit Burger Grill –– trended in the opposite direction, raking in a record-setting $1.9billion. Denny's, the giant diner chain with 1,300 locations, has struggled this year, including a three percent decline in sales Taco Bell was its biggest winner, with a seven percent jump in sales. 'Pizza Hut has many strengths — including deep consumer love,' Chris Turner, the company's CEO, said. 'However, Pizza Hut's performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum! Brands.' Pizza Hut and Denny's are caught in the middle of an economy-wide trend. Casual restaurants, which rely on extra spending from middle-income Americans, are reporting slower traffic and reduced customer interest. Chipotle's sales have fluttered this year. Sweetgreen closed stores after its growth lost some steam. Red Robbin is quickly closing stores. Restaurants are facing a toxic mix of slowing sales and rising food costs. Plus, Americans have been on a health food kick, quickly turning what once were reliable profit drivers into greasy financial sludge. That has spelled doom for hundreds of restaurant locations and some of America's most recognizable brands. Pizza Hut, the massive chain of pizzerias, has also experienced a major sales slump. Its owner, Yum Brands, is hoping someone will take it over Pizza Hut has a long list of A-list fans, including Green Bay Packer's star quarterback Jordan Love and professional volleyball player Ronika Stone Denny's is likely going private after the company agreed to sell itself in a $322million deal Burned by Chili's: Southern chain blames dominant rival for bankruptcy as mass closures loom Over the past year and a half, several iconic brands have filed for bankruptcy, including TGI Fridays, Red Lobster, Hooters, Bertucci's, and On The Border. But a few restaurants have kicked the trend with one simple goal: customer value. McDonald's reversed its slumping sales by launching a series of lower-cost options. Chili's has also built on its sales momentum, offering plates like a $14.39 burger and fries meal that it says competes with Burger King and McDonald's. 'Chili's has been on fire lately and has been significantly boosting traffic to its restaurants,' Neil Saunders, head of retail at GlobalData, previously told the Daily Mail. 'There are a whole host of reasons for the success, including improved menus and product quality, strong social media activity, and winning over younger diners.' Share or comment on this article: Denny's sold off and Pizza Hut on the block as restaurant chains face reckoning Add comment
