How to reset iPhone to factory settings from computer if screen doesn't work?
Indeed, placing the iPhone into recovery mode, then connecting to iTunes and restoring will do the trick. Here's an Apple-provided article on how to place the iPhone in recovery mode: http://support.apple.com/kb/ht1808

Make sure you use the official Apple to USB lightning connector when attempting this recovery process. I tried several non-apple cables and I was unable to follow the recovery process and generated errors in the recovery process. As soon as i used an official Apple cable - no issue.