Back to top

Yum's Beer Delivery Sinks Domino's and Papa John's Stock

Read MoreHide Full Article

Shares of both Papa John's (PZZA - Free Report) and Domino's Pizza (DPZ - Free Report) sunk on Wednesday after rival Yum Brands (YUM - Free Report) announced that Pizza Hut will now deliver beer to its customers.

On Tuesday, the Yum subsidiary began to test beer delivery in the Phoenix area, with the hopes to add wine to its booze delivery offerings as soon as January.

Pizza Hut currently sells wine and beer at many in-store locations. Therefore, the next logical step was to offer adult beverage delivery, according to statements from Pizza Hut’s Director of Brand Marketing, Stacy Lynn Bourgeois.

Phoenix-area Pizza Hut customers will be able to order six-packs of Shocktop, Bud Light, Budweiser and a local Arizona-based craft brew, Kilt Lifter, which will all cost a flat rate of $10.99. Drivers will check customers’ IDs to verify that they are over 21 and deliver the cold beer kept in a cooler.

Yum plans to roll out Pizza Hut’s beer and wine delivery concept to more markets after its Phoenix trial.

This beer delivery move comes after Yum poured $130 million into Pizza Hut in April in order to better compete with rivals Domino’s and Papa Johns. Since then, the company also made plans to hire 14,000 more delivery drivers by the end of the year.

Shares of Yum, which also owns KFC and Taco Bell, were little changed after the announcement. However, rivals Domino’s and Papa John’s, saw their stock prices sink after the beer delivery announcement.

Papa John’s stock tanked 5.43% on Wednesday, helping the now controversial pizza giant inch closer to its 52-week low. Papa John’s is currently a Zacks Rank #4 (Sell) and scored an “F” for momentum in our Style Scores system. Shares of Domino’s dipped nearly 2.40%.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>



Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Yum! Brands, Inc. (YUM) - free report >>

Domino's Pizza Inc (DPZ) - free report >>

Papa John's International, Inc. (PZZA) - free report >>


More from Zacks Stocks in the News

You May Like