To many food lovers, calling Domino’s Pizza “pizza” is a crime. Yet in the last decade, Domino’s went from “cardboard pizza” to “edible” thanks to a series of new recipes and initiatives. Since then, the flailing pizza chain became one of the fastest-growing restaurant stocks on the market.
Pizza Hut used to be better than Domino’s in the same way that eating a raw potato is more favorable than eating dirt. Yet in the last decade, the company’s quality and popularity took a nosedive. Domino’s Pizza tastes better, is way more popular, and has more diverse product offerings. Pizza Hut is still…well, Pizza Hut.
Here’s a thoroughly researched and highly scientific chart to explain the difference between the two brands:
Just like Domino’s in the late ’00s, Pizza Hut is aware that people do not like their products. So, to win customers back and reclaim the fast-food pizza throne, the Yum Brands-owned restaurant is taking a page out of their competitor’s playbook.
Pizza Hut is not so hot.
Pizza Hut’s sales have slowed down in recent years as more people flock to Domino’s for not-quite-pizza. During a recent earnings call, Yum Brands CEO Greg Creed announced a 7% decline in sales across U.S. Pizza Hut locations. At the same time, other Yum chains like KFC and Taco Bell increased.
Yum Brands is planning a $130 million pizza makeover.
Yum Brands is envious of their competitor’s success, so they want to replicate it on their own. This would mean spending $130 million on upgrading pizza-making equipment, bringing restaurant technology up to speed, and spending a ton on advertising. This money will go directly to Pizza Hut franchises in hopes of increasing sales and making their locations more attractive to customers.
Unlike Domino’s, Pizza Hut has yet to mention if they’ll actually improve the quality of their pizzas. Domino’s was successful because they publicly admitted their food was garbage and changed it. With this new investment, the ‘Hut might simply change everything but recipes. It’s worth noting that this announcement is relatively new, and the company hasn’t announced exact details about the investment.
Should you invest in pizza?
Investing in pizza isn’t new. Yet like some pizza joins, not all pizza stocks are worth your time. Though Yum Brands ($YUM) is up 8.43% since the beginning of the year, they’re actually down 14.85% since this time last year. If you think Yum’s tentative turnaround plan will help Pizza Hut like it helped KFC after a major investment in 2015, be sure to do your research in the company before you invest. If you’re looking for a pizza stock that’s already doing well, you might want to take a look at Domino’s ($DPZ) instead.