As the COVID-19 vaccination drive progresses, the demand for dining out is rising. Pent-up demand and significant improvement in food delivery systems are expected to drive the restaurant industry's growth in 2021. As such, we believe Pizza delivery stocks Papa John's (PZZA) and Domino's (DPZ) are likely to benefit from the industry tailwinds. But which of these stocks is a better buy now? Read more to find out.Papa John's International, Inc. (NASDAQ:PZZA), which is based in Louisville, Ky., operates and franchises pizza restaurants and provides delivery services internationally. It operates through four segments: Domestic Company-Owned Restaurants; North America Commissaries; North America Franchising; and International Operations. Ann Arbor, Mich.-based Domino's Pizza, Inc. (NYSE:DPZ) is a well-known pizza company that operates globally. It operates through three segments: U.S. Stores; International Franchise; and Supply Chain.
Over the past year, restaurants have rearranged their businesses, focusing, notably, on their delivery networks to remain operational amid pandemic-driven lockdowns. However, as the economy revives, and with significant progress on the vaccination front, the demand for dining in restaurants is rebounding. The National Restaurant Association forecasts a 10.7% rise in sales for full-service establishments and an 8% increase in sales for limited-service restaurants in 2021. The forecast bodes well for both DPZ and PZZA.
DPZ share price has gained 36.1% over the past year, while PZZA's has returned 26.4% over the period. Also, DPZ’s 36.8% gain year-to-date is slightly higher than PZZA’s 35.7% return. Nevertheless, PZZA is the clear winner with 44.2% gains versus DPZ’s 36.6% in terms of their past nine months' performance.