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Yum! Brands' (YUM) Pizza Hut Strengthens Alliance With Beyond Meat

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Yum! Brands, Inc.’s YUM Pizza Hut in collaboration with Beyond Meat, Inc. BYND, recently announced the launch of Beyond Pepperoni, a delicious plant-based form of pizza. The Beyond Pepperoni Pizza will be available as a test in approximately 70 locations across Albany, NY; Columbus and Macon, GA; Houston, TX; and Jacksonville, FL for a limited time, only at Pizza Hut.

This limited time offer will help attract customers from those who are trying to reduce meat intake or those who don’t eat meat. Georgeanne Erickson, chief brand officer, Pizza Hut said, “With this new plant-based option, we're giving customers more choices and more reasons to love Pizza Hut.”

Beyond Meat has already partnered with Yum! Brands’ Pizza Hut for new Beyond Pan Pizzas namely, Beyond Italian Sausage Pizza and Great Beyond Pizza. The Beyond Italian Sausage pizza features a mix of Italian herbs and spices like garlic, onion, paprika and fennel seeds.

Price Performance

In the past year, shares of the company have gained 45.5%, compared with the industry’s rally of 31.4%. The company continues to benefit from robust sales momentum in North America, the U.K., and Australia, with improved performance in Europe. During 2020, digital sales increased to $17 billion, reflecting an improvement of 45% over the prior year. During the second quarter, the company reported digital sales of more than $5 billion.

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During the second quarter, Pizza Hut international delivered 21% same-store sales growth in the off-premise channel on a two-year basis. At KFC U.S, the company launched its internally built KFC e-commerce website as well as app in early 2021 and its earlier third-party solution.

The company is also benefiting from unit growth. During the first, second, third and fourth quarter of 2020, the company opened 515, 328, 556 and 1,024 gross new restaurants, respectively. During first and second-quarter 2021, the company opened 435 and 603 net new units, respectively. KFC inaugurated 428 net new units during second-quarter 2021.

Zacks Rank & Other Key Picks

Yum! Brands, currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the same space include Brinker International, Inc. EAT and Jack in the Box Inc. JACK, each carrying the same rank as Yum! Brands. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Brinker has a three-five year earnings per share growth rate of 10%.

Jack in the Box’s 2021 earnings are expected to improve 54.8%.


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Yum Brands, Inc. (YUM) : Free Stock Analysis Report

Brinker International, Inc. (EAT) : Free Stock Analysis Report

Beyond Meat, Inc. (BYND) : Free Stock Analysis Report

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