Pizza Hut getting sliced by rivals in pizza wars

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

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.


Exclusive Content


Restaurants bring the industry's concerns to Congress

Neary 600 operators made their case to lawmakers as part of the National Restaurant Association’s Public Affairs Conference.


Podcast transcript: Virtual Dining Brands co-founder Robbie Earl

A Deeper Dive: What is the future of digital-only concepts? Earl discusses their work to ensure quality and why focusing on restaurant delivery works.


In the fast-casual sector, Chipotle laps Panera Bread

The Bottom Line: The two fast-casual restaurant pioneers have diverged over the past five years, as the burrito chain has thrived while Panera hit a wall. Here's why.


More from our partners