Round dough pieces having an inner portion enveloped by a dissimilar outer portion are formed without generating waste by continuously extruding two dissimilar materials to form an extrudate rope having a core of one material and an outer tube of the other material, depositing the extrudate rope on a continuously moving conveyor, pinching the extrudate rope at predetermined intervals to form spaced sections of reduced width, and separating the extrudate rope into individual dough pieces at said reduced width sections.