Domino’s Set to Usurp Pizza Hut as No. 1 Pizza Chain This Year, Industry Analyst Says

Pizza Hut U.S. portrayed as a weak link in the Yum! Brands portfolio in CEO’s statement.




Online ordering has fueled a surge in sales at Domino’s, which could soon strip away Pizza Hut’s long-held title as the top pizza chain in the country.

 

Pizza Hut is still the no. 1 pizza chain in the country, but it’s becoming a weak link in the chain for parent company Yum! Brands, according to Nation’s Restaurant News.

NRN reports that Pizza Hut reported $5.8 billion in U.S. sales in the Latest Year, a drop of 0.9% from the previous year. Domino’s, meanwhile, came in a close second with $5.3 billion, up almost 11% from the previous year, and “is on track to take the pizza segment’s top spot in the near future,” according to NRN.

Yum! Brands reported overall growth, according to a statement by its CEO, Greg Creed, but Pizza Hut wasn’t driving it. “Our strategic transformation of Yum! Brands is already well underway, helping us deliver a solid start to 2017, with core operating profit growth of 9% in the first quarter,” Creed said. “This growth was led by Taco Bell’s impressive same-store sales growth of 8% and double-digit core operating profit growth at KFC, partially offset by weakness at Pizza Hut U.S.”

 

 

NRN notes that Mark Kalinowski, a restaurant industry analyst for Nomura, predicts Domino’s will claim Pizza Hut’s long-held No. 1 spot this year. “In January, Domino’s revealed that earlier this decade, it had set an internal goal of overtaking Pizza Hut as the No. 1 pizza chain in terms of market share,” Kalinowski said in a May report. “We forecast that this transition will happen in the U.S. during 2017, with confirmation of the changeover likely by the end of springtime 2018. Such a change marks the end of a radical transformation in the U.S. limited-service pizza sector, where Pizza Hut has reigned supreme for decades.”

Online ordering and a solid loyalty program have played a huge role in Domino’s own radical transformation. As customers favor convenience over everything else, Domino’s has developed at least 10 different ways to order pizza online, from tweeting a pizza emoji to a no-click smartphone app that automatically places an order when it’s opened.

 

Edit Module

Tell us what you think at or email.

Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags

Related Articles

3 Pizzerias to Watch: Grandmas, Sour Beer and Expansion

A look at the pizzerias that have been catching our attention lately.

Marketing to Generation Z

4 ways Gen Z will impact the restaurant industry.

Pizzeria Owners Attend Barbara Bush's Private Funeral

After more than two decades as a customer, the former first lady requested the pizzeria owners' presence.

Study Finds Younger Consumers Crave Human Connection

Younger consumers use technology to enhance their social experiences when dining out, according to study.

Update Concerning Romaine Lettuce Scare

Leafy greens producers offer new information that can help restaurants and consumers purchase lettuce after E. coli outbreak.

USPT Member Takes Silver at World Pizza Championship in Parma

Scott Volpe of Fiamme Pizza in Tucson, Arizona, takes the silver medal in Freestyle Acrobatics at the championship event.

Feel the Power of the 4th: 5 Pizzeria Promotions for Star Wars Day

5 pizzeria promotions for Star Wars Day

Historic Pizzeria to Undergo $1 Million Renovation

Shield's Pizza in Troy, Michigan, will get a facelift, menu overhaul and new partner.

Pizzeria Raises Dough for Autism Awareness Month

Pizza by Pappas in Scranton, PA, is donating half of its profits to support autism charity.

Di Fara Pizzeria Forced to Close Due to Health Code Violations

Domenico DeMarco's beloved pizza shop will likely reopen after corrections are made.
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit Module
Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags