Pizza Hut’s parent company is exploring the possibility of selling the pizza chain.

Pizza Hut, a globally recognized brand within the Yum Brands portfolio, is reportedly undergoing a formal review that may lead to its sale. This decision was announced by Yum Brands on Tuesday, as the pizza chain faces significant challenges in competing within an increasingly saturated market.

Yum CEO Chris Turner emphasized Pizza Hut’s many advantages, which include a broad international presence and notable growth in various regions. With nearly 20,000 outlets across more than 100 countries, the chain’s international sales experienced a modest uptick of 2% during the first nine months of the current year, with China, in particular, serving as the brand’s second-largest market after the United States.

However, the situation in the U.S. paints a different picture. Approximately 50% of Pizza Hut’s revenue is generated domestically, yet U.S. sales for the chain fell by 7% over the same period. This decline can be attributed to several factors, including a reliance on dated dine-in restaurant models at a time when consumer preferences have shifted toward more convenient pickup and delivery options. In 2020, one of Pizza Hut’s major franchisees filed for bankruptcy and had to close around 300 locations, further highlighting the brand’s operational struggles.

Turner stated that while the Pizza Hut team has been actively addressing various business challenges, the chain’s performance suggests a need for strategic action that might be more effectively managed outside of Yum Brands. The review process will explore different strategic options to unlock the brand’s full potential.

Although Yum has not established a timeline for the review’s completion and has opted not to make any further comments on the matter, the company’s stock rose by 7.3% on the same day following the announcement. Yum Brands, which also includes KFC, Taco Bell, and Habit Burger Grill, reported an 8% revenue increase for the third quarter, driven largely by strong performances from KFC and Taco Bell.

Founded in 1958 in Wichita, Kansas, Pizza Hut originated from a modest loan of 0 between two brothers. Its famous red-roofed restaurants became synonymous with casual dining and when PepsiCo acquired the brand in 1977, Pizza Hut was already on its way to becoming the top pizza chain globally by sales. However, in a landscape dominated by newer models focusing on delivery, such as Domino’s, Pizza Hut must now navigate a challenging path forward.

This uncertain future for Pizza Hut is mirrored by the recent news surrounding Denny’s, another dining establishment founded in the 1950s, which has also announced plans to be sold and taken private amid shifting consumer preferences. This juxtaposition highlights the broader trends affecting traditional dining chains in today’s rapidly changing market.