BUSINESS + ECONOMY

Americans can’t stop shoving pizza into their faces

Aug 25, 2020, 9:24 AM

A large Philly cheesesteak pizza from a Papa John's International Inc. restaurant is arranged for a...

A large Philly cheesesteak pizza from a Papa John's International Inc. restaurant is arranged for a photograph in Louisville, Kentucky, U.S., on Friday, May 1, 2015. Papa John's is expected release quarterly earnings results after the close of U.S. financial markets on May 5. Photographer: Luke Sharrett/Bloomberg via Getty Images

(CNN) — America’s pandemic-induced love affair with pizza shows no signs of slowing down.

That’s a huge relief for Papa John’s, helping to speed up its turnaround plans. The pizza chain said Tuesday that its North American sales rose 24% over the past four weeks. Internationally, sales were also strong, jumping 23% for the period.

Pizza has thrived as other restaurants struggle mightily during the coronavirus pandemic. Pizza has been synonymous with delivery for decades, which is crucial when people are afraid or barred from eating inside restaurants. And it’s cheap — helpful during the worst recession since the Great Depression.

“Papa John’s numbers demonstrate that value and convenience is likely to be a powerful combination even a post-pandemic environment,” Morningstar analyst R.J. Hottovy told CNN Business.

Papa John’s momentum hasn’t slowed much since it reported second-quarter earnings on August 6. For the three months ending on June 28, which encompassed the continued spread of coronavirus and nationwide lockdowns, sales rose 28% at its North American stores. July was also strong, with sales increasing 30% in North America and nearly 14% internationally.

To capitalize on demand, the company recently announced a new creation: board member Shaquille O’Neal’s pizza, which is made with extra cheese, extra pepperoni, and extra-large slices. And it said it would hire 30,000 new workers to meet America’s surging demand for pizza.

It’s not alone: Domino’s also announced it was hiring 20,000 employees and rolled out two new pizzas (chicken taco and cheeseburger), which the company said would deliver better than an actual chicken taco or a cheeseburger (CNN Business has not independently confirmed those claims).

Domino’s CEO Ritch Allison said in a recent earnings call that customers are buying more pizza to keep leftovers in the fridge. “They’re thinking about not just that evening’s meal, but how they’re planning for the following day,” he said.

Domino’s last month said second-quarter sales at stores open at least a year increased by 16%.

Pizza Hut, which was struggling before the pandemic, is growing too — albeit slower than its rivals. Sales at stores open at least a year rose 1% last quarter. Its largest franchisee, But Pizza Hut has relied more on dining in than its rivals, and NPC International, announced last week it was closing 300 locations — mostly dine-in restaurants — and selling its remaining 900 Pizza Hut locations as part of its bankruptcy arrangements.

Meanwhile, Papa John’s said that “almost all” of its roughly 3,000 North America restaurants have reopened. Around 150 of its 2,100 international franchised locations are temporarily closed because of local restrictions during the pandemic.

Going forward, Hottovy predicts that Domino’s and Papa John’s will continue to be successful. The two chains “are likely to be the pacesetters for the broader restaurant category over the foreseeable future as we move from a period of pandemic uncertainty to a period of economic uncertainty,” he added.

The-CNN-Wire
™ & © 2020 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

Business + Economy

EVERETT WALMART, EVERETT, WASHINGTON, UNITED STATES - 2023/04/19: An empty cart is seen near an emp...

Nathaniel Meyersohn, CNN

The real reasons stores such as Walmart and Starbucks are closing in big cities

Several forces are pushing Walmart and Starbucks out of some city centers: a glut of stores, people working from home, online shopping, exorbitant rents, crime and public safety concerns, and difficulty hiring workers.

11 months ago

graduates are pictured, the us is offering some student loan debt forgiveness...

Associated Press

The US has approved $42 billion in loan forgiveness for public service workers. Here’s what to know

The program is separate from U.S. Supreme Court is currently considering whether that plan can go ahead.

11 months ago

people at restaurant eating on mother's day pictured...

Alexandra Peers, CNN

Why Mother’s Day is the most hated day in the restaurant industry

The National Retail Federation forecasts that Mother's Day spending will reach $35.7 billion this year, with a record $5.6 billion spent on a meal or outing.

11 months ago

debt...

Curt Gresseth

Ticktock: US steps closer to debt default

Robert Spendlove, senior vice president and economic and public policy officer at Zions Bank, joins the show to discuss what would happen if the federal government defaults on its debt.

11 months ago

close up of a peleton bike pictured, a recall has been issued for some...

Associated Press

Peloton recalling more than 2M exercise bikes because the seat post assembly can break during use

The recall includes approximately 2.2 million of the Peloton Bikes Model PL01. The bikes were sold from January 2018 through May 2023 for about $1,400.

11 months ago

U.S. President Joe Biden speaks during the Democratic National Committee winter meeting on February...

Arlette Saenz, CNN

Biden takes debt ceiling pitch on road amid standoff with Republicans

The president said he believes the country can avoid default because an "overwhelming number of members of ... Congress know it would be a disaster."

12 months ago

Sponsored Articles

close up of rose marvel saliva blooms in purple...

Shannon Cavalero

Drought Tolerant Perennials for Utah

The best drought tolerant plants for Utah can handle high elevations, alkaline soils, excessive exposure to wind, and use of secondary water.

Group of cheerful team members high fiving each other...

Visit Bear Lake

How To Plan a Business Retreat in Bear Lake This Spring

Are you wondering how to plan a business retreat this spring? Read our sample itinerary to plan a team getaway to Bear Lake.

Cheerful young woman writing an assignment while sitting at desk between two classmates during clas...

BYU EMBA at the Marriott School of Business

Hear it Firsthand: 6 Students Share Their Executive MBA Experience at BYU’s Marriott School of Business

The Executive MBA program at BYU offers great opportunities. Hear experiences straight from students enrolled in the program.

Skier being towed by a rider on a horse. Skijoring....

Bear Lake Convention and Visitors Bureau

Looking for a New Winter Activity? Try Skijoring in Bear Lake

Skijoring is when someone on skis is pulled by a horse, dog, animal, or motor vehicle. The driver leads the skiers through an obstacle course over jumps, hoops, and gates.

Banner with Cervical Cancer Awareness Realistic Ribbon...

Intermountain Health

Five Common Causes of Cervical Cancer – and What You Can Do to Lower Your Risk

January is National Cervical Cancer Awareness month and cancer experts at Intermountain Health are working to educate women about cervical cancer.

Kid holding a cisco fish at winterfest...

Bear Lake Convention and Visitors Bureau

Get Ready for Fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy.

Americans can’t stop shoving pizza into their faces