Domino’s Vs. Papa John’s: Which Pizza Delivery Stock Is A Better Buy?

pepperoni pizza

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Papa John’s International, Inc. (PZZA), which is based in Louisville, Ky., operates and franchises pizza restaurants and provides delivery services internationally. It operates through four segments: Domestic Company-Owned Restaurants; North America Commissaries; North America Franchising; and International Operations. Ann Arbor, Mich.-based Domino’s Pizza, Inc. (DPZ) is a well-known pizza company that operates globally. It operates through three segments: U.S. Stores; International Franchise; and Supply Chain.

Over the past year, restaurants have rearranged their businesses, focusing, notably, on their delivery networks to remain operational amid pandemic-driven lockdowns. However, as the economy revives, and with significant progress on the vaccination front, the demand for dining in restaurants is rebounding. The National Restaurant Association forecasts a 10.7% rise in sales for full-service establishments and an 8% increase in sales for limited-service restaurants in 2021. The forecast bodes well for both DPZ and PZZA.

DPZ share price has gained 36.1% over the past year, while PZZA’s has returned 26.4% over the period. Also, DPZ’s 36.8% gain year-to-date is slightly higher than PZZA’s 35.7% return. Nevertheless, PZZA is the clear winner with 44.2% gains versus DPZ’s 36.6% in terms of their past nine months’ performance.

So, which stock is a better buy now? Let’s find out.

Latest Developments

On June 29, PZZA, in partnership with its franchise partner PJ Western Group, announced its expansion into Germany. The company plans to open 250 restaurants in the German market over the next seven years. This should promote its growth and further accelerate its development in international markets.

On April 20, DPZ announced its expansion in Ghana, strengthening its global footprint. With this, Domino’s now operates in more than 90 markets worldwide.

Recent Financial Results

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