pizza hut stock

Pizza Hut Stock IPO: Can You Invest in this Pizza Company?

The following guide answers the question: Can you Buy Pizza Hut Stock?

Just like Undervalued Stocks, this popular pizza restaurant chain could be an enormously profitable investment center.

Especially when you look at the success of other long-standing restaurant chains like Buffalo Wild Wings or Subway.

As large of a portion of the American diet that pizza represents today, it is hard to imagine that this option was not available until Italian immigrants made their way to the United States in the late 19th century and brought with them the delectable recipes from their native land.

Pizza Hut was one of the first companies that exposed delicious pizza pies to areas all around the U.S.

Their success can be attributed to the mouthwatering appetizer and dessert combinations available upon request, various crust styles that resonate with different areas of the U.S., and the constant innovation when developing new and exciting topping combinations and flavors of pizza.

We explore this question of buying Pizza Hut Stock below. If IPOs interest you, check out our list of the Best Upcoming IPOs.

What is Pizza Hut?

Pizza Hut is an American international restaurant chain that specializes in serving Italian-American cuisine to hungry and eager customers.

can you buy pizza hut stock

As of 2020, Pizza Hut had 18,703 locations around the world. These locations include the United States, Canada, Mexico, India, Bangladesh, Pakistan, China, Japan, Saudi Arabia, United Arab Emirates, and many more.

The flagship menu item has been and will continue to be pizza. Part of the reason for the company’s success is due to the various types of crusts customers have the option to choose from.

These pizza crust styles include Pan crust, Stuffed Crust, Hand-Tossed, Thin ‘N’ Crispy, and Dippin Strips. Another reason for Pizza Hut’s meteoric rise in popularity is the delicious toppings that adorn their pizza.

pizza hut food

Pizza Hut’s vast menu can satisfy any palette and includes flavors such as Pepperoni Lover’s, Supreme, Veggie Lover’s, Meat Lover’s, and more.

Besides delicious pizza, there are also mouth-watering appetizers, entrees, and desserts to choose from.

Philanthropic endeavors that benefit people of all ages and backgrounds are priorities for Pizza Hut as they consistently seek to serve the communities in which its locations are.

pizza hut stock ipo

The first is the A+ Pizza Program that provides hot, delicious pizza in school cafeterias that adhere to NSLP and “Smart Snack Entree” regulations.

The second is a program called, BOOK IT!, which allows teachers to set reading goals for their students and then rewards students with certificates for a free personal pizza redeemable at the local Pizza Hut location.

Additionally, Pizza Hut participates in the Harvest Program that attempts to eliminate food waste by donating surplus food from their local restaurants to those in need.

 

Pizza Hut History

Brothers Dan and Frank Carney founded the first Pizza Hut location in Wichita, Kansas, in 1958.

Within the first two years of operation, the brothers had opened a total of six locations and began franchising in 1959.

The first location established east of the Mississippi River was opened in Athens, Ohio, in 1966 and signaled the expansion of the chain into areas around the U.S.

The Pizza Hut building style was designed by Chicago architect, George Lindstrom, in 1963, but wasn’t implemented into all stores until 1969. In 1977, PepsiCo acquired Pizza Hut.

Pizza Hut, Taco Bell, and Kentucky Fried Chicken (KFC) were spun off by PepsiCo and became part of Tricon Global Restaurants, Inc., in 1997.

pizza hut history

Tricon Global Restaurants, Inc., was renamed Yum! Brands in 2002. The company removed over 15% of salt from its menu in 2010 to meet the Food Standards Agency.

A rebranding took place in 2014 that included an expanded menu of crust flavors, additional specialty pizzas, and updated employee uniforms.

Richtopia, a United Kingdom-based company, listed Pizza Hut as number 24 on their 2017 200 Most Influential Brands in the World list.

The company brought back the red roof logo design in 2019 that had previously been used from 1976 to 1999. Also in 2019, the company announced it would close around 500 dine-in locations around the U.S. by 2021.

Due to the bankruptcy of NPC International in 2020, which was one of Pizza Hut’s franchise providers, the company announced it would close an additional 300 locations.

Controversies

In 2007, Pizza Hut was criticized for the high salt content of its meals in the United Kingdom. It was found that some meals contained more than twice the amount of daily salt recommended per day for an adult.

In violation of the 1938 Fair Labor Standards Act, Pizza Hut delivery drivers filed a class-action lawsuit for “net wages below minimum wage due to unreimbursed automobile expenses” in 2014.

The following year Pizza Hut unsuccessfully attempted to have the case dismissed.

In 2016, Pizza Hut paid damages in the case Linkovich v. Capital Pizza Huts, Inc., which also dealt with wage violations.

Pizza Hut Stock IPO?

Pizza Hut is a subsidiary company; therefore, you cannot purchase shares of stock directly in the company.

Although you cannot buy stock directly in Pizza Hut, you can purchase stock from its parent company, Yum! Brands, Inc. (YUM).

yum brands

Pizza Hut Stock – Estimated Value

Since Pizza Hut is not currently a publicly-traded company, there is not a price to report on how much a single stock in the company would cost.

The most accurate way to determine an initial IPO price would be to compare it to other chain casual dining restaurants.

We can use the IPO opening price of similar chain casual dining companies to get a range of what to expect for a price when the company does go public.

Domino’s Pizza

  • Opening Price of Stock: $14.00
  • Previous 52 Week High: $548.72

Domino’s Pizza stock

Papa John’s

  • Opening Price of Stock: $13.00
  • Previous 52 Week High: $132.37

papa john's stock

Rave Restaurant Group

  • Opening Price of Stock: $4.00
  • Previous 52 Week High: $2.36

rave restaurant group

With a business model that is an industry leader in Italian dining and continues to expand into areas around the U.S. and the world, one could infer that if Pizza Hut ever does go public, the price of their IPO could fall somewhere within the opening prices above.

Therefore, it would be safe to assume that its IPO opening price could range from $10 – $15.

Parent Company

Yum! Brands, Inc., (YUM) was developed when Tricon Global Restaurants and Yorkshire Global Restaurants combined in 2002.

Yum! Brands, Inc., went public on June 6, 2002. The stock opened at $5.82 and was a two-for-one stock split.

A decision was made in October of 2015 to divide Yum Brands, Inc., into two publicly traded companies. The second, Yum China, was formed in November of 2016.

The corporation owns 43,617 restaurants in 135 countries and territories. In 2020, Yum! Brands, Inc., made $5.65 billion in total revenue.

Yum! Brands, Inc., the stock hit a new high with the price of a single share of stock reaching $135.77 on August 18, 2021.

yum brands stock

Additional Companies Owned

Yum! Brands also own several other companies in addition to Pizza Hut.

Below is a list of additional companies that the Yum! Brands own:

  • Kentucky Fried Chicken (KFC)
  • Taco Bell
  • The Habit Burger Grill
  • WingStreet
  • Banh Shop (Minority Investor)

Alternative Investments

So, you can’t buy stock in Pizza Hut, but you’re determined to buy equity in another chain casual dining franchise specializing in Italian cuisine. What are some of your alternative options?

  • Domino’s Pizza (DPZ)
  • Papa John’s (PZZA)
  • Rave Restaurant Group (RAVE)
  • MTY Food Group (MTYFF)

alternative investments

Can You Buy Stock in Pizza Hut?

It is a great question to ask because this chain of fast-food restaurants could be an enormously profitable investment center.

Especially when you take into account the constant innovation to meet consumer demand, exceptional promotional offers that provide options for the whole family at affordable prices, and the consistent demand for its products with pizza being a staple in the American diet.

Although you cannot buy stock directly in Pizza Hut, you can purchase stock from its parent company, Yum! Brands, Inc. (YUM).

Frequently Asked Questions

Can You Buy Pizza Hut Stock?

No, you can’t buy stock in Pizza Hut as this pizza company is owned by YUM! Brands (YUM).

When is the Pizza Hut Stock IPO?

Pizza Hut has not filed for an IPO, as they are owned by a parent company.

How Much Will Pizza Hut Stock Cost?

Although Pizza Hut has not filed for an IPO, would be safe to assume that its IPO opening price would fall somewhere in the $10 to $15 range.

Who Owns Pizza Hut?

Pizza Hut is owned by YUM! Brands.