Which Pizza Stocks Deliver for Investors?

Check out the report cards for national chains vying for a bigger piece of the pie

    View All  

Pizza Inn: D

pizzainn185 Which Pizza Stocks Deliver for Investors?Pizza Inn (NASDAQ:PZZI) is the smallest publicly traded competitor in the space and the Texas-based company faces significant headwinds. The chain has about 310 restaurants under the Pizza Inn and Pie Five Pizza brands and a market cap of only $25 million. In its most recent quarter, it reported a one-cent a share loss, while total domestic franchise sales fell by nearly 9% in the quarter.

Thinly traded nanocaps are a dicey play at best, and PZZI faces tough competition and broader challenges in the near term. The company is working to incorporate more exotic fusion flavors into its menu; earlier this year its Pie Five restaurants launched a Cuban-inspired pan pizza with pulled pork and a special mustard sauce, for example. That could be a viable niche if successfully exploited, but the rest of its menu looks a lot like Domino’s.

To put it simply, I’m not sold on PZZI’s ability to deliver for investors right now.

As of this writing, Susan J. Aluise did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2013/03/which-pizza-stocks-deliver-for-investors/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.