In times of pandemic … fierce competition between famous pizza brands

With the changing food consumption habits during the Corona pandemic and the accompanying high demand for fast food restaurants, global pizza companies are competing to gain greater market share and gain consumer satisfaction. in what seemed like a fierce war between major manufacturers similar to what happens in the burger wars that raged for many years between McDonald’s and Burger King.

3 major brands, Papa John’s, Domino’s and Pizza Hut, account for around 8% of total pizza consumption, according to data from Tastewise and what was mentioned by “Yahoo Finance”.

These companies compete with each other to gain consumer satisfaction and customer loyalty through massive marketing plans, lower prices, and the creation of new low-priced items to gain new segments.

The competition is heating up

Since the start of this year, major pizza chains in the United States have started to make efforts to retain their consumers, as Pizza Hut unveiled a new group of items in high demand due to their low price compared to their rich content, as prices for new items start at just around $ 11.

Large companies have also moved quickly to gain consumer trust and loyalty. Papa John’s has also launched content-rich products starting at $ 12, while Domino’s has started promoting new flavors for the first time in the market. at low price.

The competition is not limited to these famous brands, as other companies, like Nestlé of Switzerland, gained frozen pizza sales with great momentum around the time of the pandemic due to the shutdown measures against the virus, which has caused a huge jump in sales over the last period.

Arrows are in an uptrend

Meanwhile, investors appear to favor pizza stocks, which have been on an uptrend since the start of the year.

Data from Yahoo Finance shows Papa John’s shares have risen about 41% since the start of this year, hovering around the $ 109 levels, down from just $ 85 at the end of last year, in the middle of the year. ‘a buying frenzy on the stock with expectations of a jump in sales.

Domino shares have also risen since the start of this year by around 2%, while Yum! Brands, owner of Pizza Hut, unchanged.

According to a research note released by BTIG, shares of pizza companies are set to explode this year after the downturns it suffered last year with ambitious plans to expand and ease shutdown measures that have hit companies. sales of branches of these brands.

Excessive consumption

Research and market data indicate that the global pizza market will reach approximately $ 233 billion by 2023 with steadily increasing consumer demand.

In America alone, data from Slice Life shows that Americans consume about 350 slices of pizza per second, putting the annual consumption rate of the world’s largest economy at 3 billion pizzas per year. , and that the total amount Americans spend on them is about $ 38 billion a year.