NFL Protests 2017: Is Pizza Hut Losing Money From The Controversies?
Pizza Hut executives claimed Thursday that sales haven't been affected by the NFL protests of police brutality during the national anthem — unlike one of its top competitors Papa John's. Pizza Hut, which is part of Yum! Brands Inc. (NYSE: YUM), reported a 3 percent sales growth during its third-quarter earnings.
"We're not seeing impact on any of that on our business," Yum! Brands CEO Greg Creed said in a call with investors Thursday.
Pizza Hut's remarks come after Papa John's has stated that the protests have "hurt" their sales and have forced the company to rethink their advertisements. The protests have been polarizing, with some supporting the players and owners for their stance, while others, like President Donald Trump, condemning them.
"I am proud of our accomplishments," Creed said in a press release Thursday. "I'm especially proud of our ability to leverage our culture to rapidly transform to a more focused, more franchised and more efficient company which delivers more growth to our shareholders."
Papa John's, which began its reign as the official pizza company of the NFL in 2010, only experienced 1 percent sales growth. Sales were below expectations, but the Kentucky-based company claims it expects the same results in the next quarter because of the protests.
"The NFL has hurt us, more importantly, by not resolving the current debacle to the players' and owners' satisfaction," John Schnatter, Papa John's founder and CEO, said in a press call Wednesday. "NFL leadership has hurt Papa John's shareholders."
Schnatter added: "This should have been nipped in the bud a year and a half ago. Like many sponsors, we're in touch with the NFL. Once the issue is resolved between the players and the owners, we're optimistic the NFL's best years are ahead."
It should be noted that while Papa John’s is an official NFL sponsor, Pizza Hut is not affiliated with the NFL and is an official sponsor of the NCAA.
Frozen pizza maker DiGiorno appeared to throw shade at Papa John's following its accusations against the NFL. DiGiorno's sales are below Papa John's, but Nestle brand compared the two company's third-quarterly sales by using emojis in a tweet.
DiGiorno Pizza reeled in $1.014 billion in sales during the same timeframe that Papa John's garnered $1.71 billion.
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