Pizza Hut's Share of the Pizza Industry Is Melting Away, Says This New Data
Yum! Brands' (YUM) - Get Yum! Brands Inc. Report Pizza Hut is falling further and further behind its pizza competitors.
Food-service research group Technomic says that Pizza Hut's share of the limited-service pizza category fell to 14.3% in 2016, down sharply from 25% in 1995, according to CNBC.
KeyBanc analyst Chris O'Cull predicted in a research note in April that Domino's Pizza (DPZ) - Get Domino's Pizza Inc Report and Papa John's (PZZA) - Get Papa John's International Inc. Report will eventually dominate market share in the pizza segment, while Pizza Hut will eventually be left in the dust.
"Based on recent conversations with several franchisees and operators in the pizza segment, we believe the performance gap seems to have widened among major pizza chains during the [first quarter]," O'Cull said.
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Both Domino's and Papa John's offer pizza-delivery tracking services through their apps, and Domino's even partnered with tech leaders Apple (AAPL) - Get Apple Inc. Report , Amazon (AMZN) - Get Amazon.com Inc. Report , Alphabet's Google (GOOGL) - Get Alphabet Inc. Report and Facebook (FB) - Get Meta Platforms Inc. Report to expand its already supreme digital presence. As a result, Domino's and Papa John's saw positive same-store sales in the first quarter, although Papa John's 2% rise didn't compare with Domino's whopping 10.2% growth.
Meanwhile, Pizza Hut, with its only recent claim to fame being a pair of sneakers you can order pizza from that aren't available to customers, saw its same-store sales slide. Despite Yum's other brands Taco Bell and KFC seeing positive comparable store sales in the first quarter, Pizza Hut's dived 7%.
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