Research firm Food Genius recently revealed that pizza is now featured on 40% of all restaurant menus in the U.S. Yum! Brands’ (NYSE: YUM) Pizza Hut and Domino’s Pizza (NYSE: DPZ) are the top two chains but make up just over 15% and 9% of sales, respectively, of the highly fragmented and expanding $37.3 billion American pizza-restaurant market.
The rise of fast-casual restaurants and a weak economy have often been scapegoats for the recent struggles of fast-food chains like McDonald’s (NYSE: MCD). However, the growing popularity of pizza – both domestically and worldwide – may also be negatively affecting the rest of the fast-food industry.
Technology driving pizza growth
Ordering a pizza has never been more convenient for consumers. Digital orders now contribute to more than one-third of all sales for both Pizza Hut and Domino’s. Both chains have mobile apps compatible with at least 95% of all smartphones.