Yum! Brands Inc. (NYSE:YUM) is seeking to revitalize Pizza Hut with a $130 million investment.
The company is looking for a new way to make people interested in the pizza chain, as fellow Yum restaurants have been performing well recently. KFC’s same-store sales in its latest quarter rose 2% year-over-year, while Taco Bell surged 8%.
Meanwhile, Pizza Hut’s same-store sales suffered a 6% decline compared to the same period a year ago, and this figure was a 7% drop in the U.S. alone. The $130 million investment will help expand advertising, improve restaurant technology and upgrade the current equipment in its stores.
Yum Brands’ KFC was undergoing a similar time of distress in 2015 when the company decided to inject $180 million into efforts to expand and improve the chicken chain’s business.
The result was astounding as the restaurant’s same-store sales have grown for 11 consecutive quarters now. Pizza Hut struggles from the fact that it is only the third most popular pizza chain among younger generations, so the key to success for Yum Brands would be finding what kids want out of their food and the brand’s image.
The chain has made some moves in the right direction, including the addition of stuffed-crust pizza, which appeals to everyone who wants a little extra out of their food.
YUM stock grew 2.6% on Wednesday.
