Pizzeria chain Pizza Hut’s sales could use a few more toppings.
Parent company Yum Brands YUM -6.47% said on Wednesday that sales at Pizza Hut stores open at least a year fell 3% in the second quarter, an unexpected drop as analysts were anticipating a small 0.1% increase, according to Consensus Metrix,
Pizza Hut, which analysts say is operating dated stores and offering very little in the way of innovation, has been facing tough competition from all corners. Archrival Domino’s Pizza DPZ -0.22% has been discounting aggressively, and, for example, is currently offering pizzas with two-toppings for $5.99. Meanwhile, other restaurant chains are muscling in on Pizza Hut’s turf: In December, Chipotle Mexican Grill CMG -0.77% took a stake in a small chain called Pizzeria Locale, and is adding new outlets. And Buffalo Wild Wings invested in the pizza restaurant chain PizzaRev.Read the Full Article