How do you like your pizza crust? Do you prefer it to be thick and fluffy or thin and crispy? Regardless of your preference, Pizza Hut’s crusts are some of the best in the industry. We’re not here to discuss Pizza Hut’s delicious menu. The real question is, can you invest in Pizza Hut stock? It was once a public company until Yum! Brands acquired it in 1997. Today, investors can no longer purchase Pizza Hut’s stock, but there are other ways to invest in the company.
Fun fact: Yum! Brands was created as a spin-off from PepsiCo in 1997 when it decided to separate its restaurant division. Today, they operate independently and are important food and beverage industry players.
Table of Contents
Pizza Hut Introduction (No Stock Symbol)
Pizza Hut was founded in 1958 in Kansas. The company saw rapid US and international growth, leading to its Pizza Hut stock IPO in 1977. By 1997, it had over 10,000 stores in North America, Europe, Asia and the Middle East.
It became one of the most popular pizza joints in the world. Pizza Hut’s pan-crust pizza became a success worldwide and contributed to the brand’s popularity.
In 1997, Pizza Hut was sold to Tricon Global Restaurants, Inc., later renamed Yum! Brands. A new chapter began for Pizza Hut, which focused on bringing a fun culture to its restaurants and branding.
In 2024, Pizza Hut will have more than 19,000 locations globally. Since it is a private company, details about its financial statements aren’t public. However, the company’s annual revenue is believed to have stagnated over the last ten years.
Sales grew by only 1% last year. Various economic factors and consumer preferences have led to a decline in revenue since the 2010s.
Yum! Brands (NYSE: YUM)
In 1997, Yum! Brands acquired Pizza Hut, Taco Bell, and KFC from PepsiCo. At the same time, Yum! Brands filed an IPO and began growing thanks to these popular brands. So Pizza Hut stock is now under $YUM.
In 2020, Yum acquired The Habit Burger Grill to further its expansion. How many restaurants from each brand currently exist globally?
- Pizza Hut: 18,000 restaurants in over 100 countries
- KFC: 23,000 restaurants in over 135 countries
- Taco Bell: 7,000 restaurants in 32 countries
- The Habit Burger Grill: nearly 300 restaurants in the US and China
Yum! Brands Expansion
Yum’s expansion plans are centred around its restaurants. The objective is to open as many restaurants as possible at a record-breaking pace.
In 2022 alone, 4,560 new Pizza Hut, KFC, and Taco Bell locations were opened. The brands are also prioritizing sustainable growth and a people-first approach. Check out $YUM in place of Pizza Hut stock.
Yum! Brands Financials
Earlier, we established that Pizza Hut’s revenues were stagnant. What about the company’s global picture? Pizza Hut stock has been steadily growing since its IPO in 1997, increasing by over 2,400%, but there have been periods of instability.
Revenue and profits have been decreasing since the middle of the 2010s. The peak came between 2011 and 2013. Since 2018, both metrics have begun to increase, but they are still below their peak levels.
What happened in 2013? The company faced challenges following a food scandal involving a supplier relabeling expired meat, leading to a significant sales decline. This scandal caused customers to avoid Yum’s restaurants in China, resulting in a drop in revenue and profits domestically and internationally.
The company took a few years to recover, and its investors finally saw some positivity. In the last five years, Yum has experienced steady growth. It may be poised for further growth if its development plans are well-calculated.
Yum China Holdings (NYSE: YUMC)
In 2016, Yum! Brands underwent a separation, resulting in the creation of two independent companies: Yum! Brands and Yum China Holdings, Inc. Check out Yum! Brands if you want to trade Pizza Hut stock.
It is unclear whether they made the move following the unfortunate events in China that resulted in a loss of sales and credibility. As a result, each company focused on its respective growth opportunities and operational priorities.
Yum China operates KFC, Pizza Hut, Taco Bell, Little Sheep, Huang Ji Huang, Lavazza, and other brands in China. It has more than 14,000 restaurants in 1,900 cities across the country. Its focus is to blend Western foods with Chinese characteristics.
Yum China Stock
Yum China’s stock has seen some difficulties recently. China is experiencing a period of deflation and facing economic growth issues. Its consumers are less likely to spend on discretionary items.
Nonetheless, the results were positive in 2023. The company’s revenue increased to almost $11B, nearly a 15% increase from 2022. However, investors remained pessimistic due to the overall health of the Chinese economy.
The stock has seen many ups and downs in the last five years. Despite all this, Yum China remains one of the strongest players in China and will likely benefit once the country’s economy shows signs of growth.
Pizza Hut Competitors
Pizza Hut may not be a public company, but two of its biggest competitors in the US and abroad are public. Here is a brief breakdown of Domino’s Pizza and Papa John’s.
1. Domino’s Pizza (NASDAQ: DPZ)
Since its creation in 1960, Domino’s Pizza has been a customer favorite. Today, there are nearly 20,000 restaurants worldwide and 6,400 in the US. Despite the heavy competition, Domino’s has grown, innovated, and delivered strong financials.
Thanks to its user-friendly mobile app and sophisticated tracking system, consumers can have a worry-free time ordering and receiving their pizza. During the COVID pandemic, the company adapted to the adversity and delivered more pizzas and stronger financial results than ever.
In the last 15 years, Domino’s annual revenue and profits have increased almost yearly. What else can you ask for as a shareholder? Speaking of which, they have been well-rewarded. The stock is up nearly 4,000% since 2010 and 88% in the last five years. Additionally, Domino’s issues a yearly dividend yield of 1.34%.
2. Papa John’s (NASDAQ: PZZA)
What separates an average pizza from a delicious pizza? Its ingredients! Papa John’s slogan, ‘’Better ingredients, better pizza”, has helped the company separate itself from its competitors.
Papa John’s brand is recognized in the US and 48 other countries thanks to its 5,500 locations worldwide. These numbers may not be as impressive as Pizza Hut’s or Domino’s, but they remain respectable.
Financially, Papa John’s financials are also underwhelming compared to their competition, but their growth in the last 10 years can’t be denied. In 2023, yearly revenue and profit reached a record $2.136B and $760M respectively.
Papa John’s stock grew modestly in the last 5 years by 44%. Fortunately, its yearly dividend yield is a little more attractive at 2.56%
Pizza Hut Franchise
Investing in the stock market isn’t the only way to invest in Pizza Hut. You may not be able to buy its stock, but you can invest in a franchise. There are a few steps to consider before jumping on this opportunity.
You must perform your due diligence regarding the location, the staff, and the fees. The total initial investment for a Pizza Hut franchise can range from $300,000 to $2.2 million.
Final Thoughts: Pizza Hut Stock
To conclude, Pizza Hut is not a public company because it belongs to Yum! Brands. Fortunately, you can easily buy its stock with your broker. Yum! Brands also owns Taco Bell and KFC and operates under a different entity in China (Yum China).
The fast food industry is very competitive, and Yum! Brands have adapted to remain ahead of their competition across all continents.
The next step is to remain healthy while providing delicious pizza, fried chicken, and other meals. If Yum! Brands can continue to innovate and grow; the stock will continue to prosper.
Frequently Asked Questions
It has been owned by Yum! Brands, Inc. since 1997.
Candlestick patterns work, but they are not 100% foolproof. Patterns sometimes fail, but they are still the most accurate indicator when trading. Price action is an immediate indicator that is formed by candlesticks. All of the other indicators in trading are lagging and revolve around price action. Candlestick charts are the way traders determine support and resistance levels and show when to enter and exit a trade potentially.
PepsiCo purchased Taco Bell in 1978. When Yum! Brands became a separate entity in 1997, it transferred the ownership to Yum.
