Pizza Hut could soon be up for sale.

Yum Brands, Pizza Hut's parent company, said Tuesday it's conducting a formal review of options for the brand, which has struggled to compete in a crowded pizza market.

Yum CEO Chris Turner said Pizza Hut has many strengths, including a global footprint and strong growth in many countries. Pizza Hut has nearly 20,000 stores in more than 100 countries, and its international sales were up 2% in the first nine months of this year. China is its second-largest market outside the U.S.

But Pizza Hut gets nearly half its sales from the U.S., where it has around 6,500 stores, and U.S. sales fell 7% in the same period. Pizza Hut was long saddled with large, outdated dine-in restaurants at a time when consumers wanted fast pickup and delivery. In 2020, one of Pizza Hut's largest franchisees filed for bankruptcy protection and closed 300 stores.

"The Pizza Hut team has been working hard to address business and category challenges; however, Pizza Hut's performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum Brands," Turner said in a statement. "To truly take advantage of the brand we've built and the opportunities ahead, we've made the decision to initiate a thorough review of strategic options."

Yum has not set a deadline for the completion of the review. The company said it will not make any further comments on the review.

Yum Brands shares were up nearly 7% in morning trading Tuesday.