Pizza Hut’s largest franchisee, based in Leawood, files for Chapter 11 bankruptcy

Business

The world’s largest Pizza Hut franchisee filed for Chapter 11 bankruptcy Wednesday.

In its filing, Leawood-based NPC International Inc. listed estimated assets ranging from $1 billion to $10 billion and estimated liabilities in the same range. 

NPC operates 1,227 Pizza Hut restaurants in 27 states, representing about 20% of the domestic Pizza Hut system. It’s also The Wendy’s Co.’s (Nasdaq: WEN) largest franchisee, with 393 restaurants in eight states.

One of NPC’s hurdles has been Pizza Hut’s performance in recent years, which created a “significant drag on profitability due to a lack of sales growth and a significant inflationary cost environment,” the filing said. In addition to a drop in foot traffic and pricing pressures in the pizza category, the Pizza Hut brand has lost market share to competitors.

See the franchisee’s five largest unsecured creditors and parent company Yum Brands’ statement about the filing in the Kansas City Business Journal.

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