First off, it’s important to understand that Wendy’s and Pizza Hut did not file Chapter 11 bankruptcy. NPC International, Inc, a franchisee that operates more than 1,225 Pizza Hut and more than 385 Wendy’s stores across the U.S., did. In total, there are nearly 19,000 Pizza Hut stores worldwide and more than 6,700 Wendy’s restaurants worldwide.
Also, bear in mind that bankruptcy doesn’t necessarily mean going out of business. It often allows a company whose debts exceed its assets to reorganize and renegotiate repayment terms with their creditors. However, a Chapter 11 filing can lead to a liquidation if the company is insolvent.
As Fortune notes, NPC International can continue to operate as bankruptcy proceedings and reorganization is underway. Meanwhile, other franchisees are not affected. That said, Pizza Hut in particular has definitely undergone some changes recently. The chain has closed several dine-in locations over the past several years as customers increasingly only order takeout or delivery.
They have also faced a lot more competition over the years, as Domino’s has improved food quality and sales to become the top chain in the country. Other competitors such as Papa John’s and Little Caesars have also taken market share from the Hut.
Source : https://www.distractify.com/p/is-pizza-hut-going-out-of-business