Pizza Hut, Papa Johns May Sell as Franchise Deals Grow

Restaurant M&A, Fitness Expansion and Nostalgic Ads Dominate this Week’s Franchise News

Two big-name pizza franchises could change hands. Yum! Brands hinted it might sell its Pizza Hut division, which has been flailing despite revitalization attempts, according to The New York Times. And Papa Johns CEO Todd Penegor said his brand isn’t currently up for sale, but if an enticing offer came along, the company remains “open-minded,” Nation’s Restaurant News reported Friday.

On a Nov. 3 call with analysts and investors, Yum CEO Chris Turner said Pizza Hut could reclaim its past dominance with a different approach, “including but not limited to a sale of the business,” The Times stated. Turner said that some markets might require a multiyear effort to reposition Pizza Hut as a leading brand, and that effort might be best carried out under a different structure or by a new owner.

Yum! Brands’ Taco Bell and KFC restaurants have boomed lately. During the third quarter, sales for restaurants open a year or more increased 7% at Taco Bell and 3% at KFC, while Pizza Hut’s fell 1%, The Times said. On Thursday,  Papa John’s reported a 2% system-wide sales increase, with non-domestic sales largely responsible. 

Pizza Hut has more than 19,000 restaurants worldwide. Papa Johns has nearly 6,000.

Restaurant Deals and Big Sales

Restaurant brands’ done deals and brewing ones include: 

• The 95-unit Tex-Mex chain Tijuana Flats’ acquisition by &pizza, a deal that led to a newly minted parent company for both – Latitude Food Group., Nation’s Restaurant News reported Thursday. The 45-unit &pizza brand is based in Washington, D.C. Latitude plans to expand Tijuana Flats via corporate and franchise sites, starting in the brand’s home state of Florida. Latitude CEO Mike Burns told NRN there are plans to synchronize human resources, finance and development teams, while keeping the brands’ marketing and operations separate.
• Roark Capital plans to sell the 700-location Nothing Bundt Cakes franchise – possibly for more than $2 billion, QSR Magazine reported. Dallas-based Nothing Bundt Cakes expects to post around $120 million of 2026 earnings before interest, taxes, depreciation and amortization. Roark Capital acquired the bakery chain in 2021.
• The world’s largest franchisee, The Flynn Group, will add 160 new 7 Brew drive-thru coffee locations to its portfolio, Restaurant Business reported. The 7 Brews’ locations were not disclosed; the brand currently operates in 35 states, the publication said. Flynn Group, which operates almost 3,000 units of seven restaurant brands, also is launching a new Growth division to focus on innovative younger brands.

Anytime Fitness Expands into Saudi Arabia 

Anytime Fitness has finalized a master franchise agreement with ABFit Riyadh to bring 60 or more clubs to cities across Saudi Arabia. The first gym will open next spring, Anytime Fitness said in a Friday news release. Anytime Fitness currently has more than 5,600 clubs worldwide.

The expansion of Anytime Fitness, part of Purpose Brands’ portfolio, coincides with Saudi Vision 2030, the kingdom’s push to promote its citizens’ health. The GYMGUYZ franchise also recently announced expansion into Saudi Arabia and three other Middle Eastern nations. 

Macaulay Culkin to Star in ‘Home But Not Alone’ Ad 

Home Instead, which provides in-home care for older adults, dips into nostalgia for its holiday ad campaign, “Home But Not Alone,” starring Macaulay Culkin (above). He will reprise his 1990s Home Alone movie character, Kevin McCallister – all grown up now — who tries to keep his mom safe at home but realizes he can’t do it alone.

In a news release, Home Instead said the advertising pays tribute to a holiday classic while touching on a universal situation: knowing when extra support for a loved one is necessary and beginning a thorny conversation about it. The commercials will air now through Jan. 11 during showings of Home Alone, other holiday programs and college football games.

Wendy’s Will Close Hundreds of Underperforming Stores

Ken Cook, interim CEO of Wendy’s, told investors Friday that the company would shut a “mid-single-digit percentage” of its 6,000 U.S. locations. That equates to about 200 to 350 sites, CNN reported. 

“When we look at the system today, we have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective,” Cook said during an earnings call on Friday. The closures will begin this year and continue in 2026, he added. The fast-food burger franchise had closed 140 restaurants within roughly the last year, and CNN noted Wendy’s U.S. same-store sales declined 4.7% during the third quarter.

McDonald’s Answer to Penny Shortage? Rounding Change

Because the U.S. has stopped manufacturing pennies, McDonald’s joins some other big-name U.S. retailers that have felt the pinch in trying to dispense exact change to cash-paying customers. As a result, some McDonald’s locations are rounding up or down to the nearest nickel because of the penny shortage.

“Following the discontinuation of pennies nationwide, some McDonald’s locations may not be able to provide exact change,” McDonald’s USA disclosed to Nexstar Media Group. “We have a team actively working on long-term solutions to keep things simple and fair for customers. This is an issue affecting all retailers across the country.”

McDonald’s is not alone in adapting to the shortage. Kwik Trip and Love’s convenience stores round down the cost of purchases, and Sheetz, another convenience store chain, briefly ran a promotion offering a free soda to customers who bring in 100 pennies. Giant Eagle, an Eastern supermarket chain, has encouraged customers to bring in 50 or more pennies to exchange for a gift card valued at double the amount.