Domino’s Throws Punch at Pizza Hut With New Offering

by Nate Wooley | September 26, 2012 10:53 am

Domino’s Pizza (NYSE:DPZ[1]) rolled out a new pan-style pizza for delivery on Monday at almost 5,000 stores. In a press release, the company said its new product — “Handmade Pan Pizza” — is made from handmade, never-frozen dough.

The move is seen as a direct challenge to Yum! Brands-owned (NYSE:YUM[2]) Pizza Hut, famous for its pan pizzas.

The Handmade Pan Pizza is the latest in Domino’s menu revisions that began two years ago with the debut of a new hand-tossed recipe and this year’s “Artisan Pizza” launch.

This is the third time that Domino’s has attempted to enter the lucrative pan market. According to USA TODAY[3], the pan pizza is a $6.4 billion market that covering 1 in 5 pizzas sold.

Domino’s will be competing with more than just Pizza Hut, of course. Both rivals Little Caesars and Papa John’s (NASDAQ:PZZA[4]) also sell pan pizza, not to mention countless independent operators.

Endnotes:
  1. DPZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=DPZ
  2. YUM: http://studio-5.financialcontent.com/investplace/quote?Symbol=YUM
  3. USA TODAY: http://www.usatoday.com/money/business/story/2012/09/24/dominos-to-roll-out-pan-pizza/57833490/1
  4. PZZA: http://studio-5.financialcontent.com/investplace/quote?Symbol=PZZA

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