WSJ reporting today Papa John, 4th largest pizza chain, is closing 300 stores. This after Yum Brands announced Pizza Hut is for sale. They are closing 250 underperforming stores.
This has to be K-squeeze. The lower leg of the K recovery is squeezing low income budgets. Costs are rising faster than income. So they are cutting back.
I think we expect most pizza is sold to young people or to those with children.
I recall talking to a Burger King manager who was saying when gas prices rise their sales are down. Kids leave home w money in their pocket but gas for car is 1st priority.
Domino’s has a clever ad pointing out that a $10 pizza will feed you and your friends. Hamburger prices are up with rising beef prices. $10 might get you a combo but nothing for friends.
Burger shops must be hurting trying to keep things affordable with skyrocketing beef prices. Mostly they are emphasizing chicken in various forms.
No doubt pizza shops are seeing cost pressures too but not much beef in most pizza. They should be doing ok as an affordable meal.