Yum Announces Big Pizza Hut Investment

Friday, May 12, 2017

There's no question that Domino's has stolen the bulk of the recent mojo in the ongoing pizza wars sweeping across the globe. The latest salvo promises to ratchet up the intensity, as Yum Brands announced a dramatic $130 million investment for its Pizza Hut brand.

As part of an investors conference call announcing Yum's quarterly results, CEO Greg Creed said the company plans to upgrade technology, equipment and advertising between now and the end of 2018.

Creed said Yum's investment in Pizza Hut was significant, and could boost the brand's fortunes like its $130 million investment into KFC back in 2015. He suggested it was a "relatively modest" investment given Yum's massive scale, but expressed optimism that it would reverse the fortunes of the seventh largest U.S.-based franchise brand.
In last year's Franchise Times Top 200, looking at year-end 2015 numbers, Pizza Hut posted an estimated $12 billion in global sales with nearly 7,800 U.S. locations and more than 16,000 locations across the globe.

We'll continue to monitor the latest developments in the pizza wars, but this should make things much more interesting. Pizza Hut hasn't exactly sat on its laurels as Domino's has gone on its recent (and very positive) tear.

The company has recently launched a text-based delivery tracker, and has added other high-tech enhancements including voice ordering through Amazon's Alexa. Given the sustained investment Domino's has delivered in terms of food quality, in-store ambiance, delivery technology and its social and online presence, Pizza Hut has a long ways to go to catch up.

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