U.S. pizza conglomerates' share price outperforms Canadian counterparts on the week
The COVID-19 pandemic has delivered a devastating blow to the restaurant sector, but not all food-service companies are suffering.
The share price of two large U.S. pizza giants saw significant gains in the past week.
The big winner was Pappa John's International, which rose 10 percent by Friday's close after opening last Monday at US$59.20.
It combines value with taste, which can hit the sweet spot for families stuck at home in an economic slowdown.
While many Pappa John's outlets have areas where people can eat-in, the company's business is overwhelmingly tied to deliveries and takeout.
That's made it more resilient when public-health officials are ordering restaurant closures in many jurisdictions where it operates.
Another takeout and delivery company, Domino's Pizza Inc., saw its shares rise 5.3 percent on the week.
As the market leader, it's already a pricey stock, which might discourage younger investors who don't have a ton of cash to throw around. It closed the week at US$362.97.
Pizza Today ranks Pizza Hut and Little Caesars as the second- and third-largest U.S. chains, followed by Papa John's.
Pizza Hut is a division of the fast-food giant Yum Brands, which also owns KFC and Taco Bell. On the week, Yum Brands rose 5.5 percent to close at US$84.17.
Little Caesars is part of privately held Ilitch Holdings, owned by Marian Ilitch.
Canada's best-known pizza companies haven't fared nearly as well as their U.S. counterparts.
Pizza Pizza Royalty Corp. was down 2.2 percent on the week. You can see the six-month chart below.
Boston Pizza Royalties Income Find fared even worse, falling 10.3 percent on the week to close at $6.79.
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