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Domino’s Pizza Grabbing a Piece of the International Pie

Expansion abroad holds the key to growth


Domino’s Pizza (NYSE:DPZ) has been cooking up huge returns since revamping its pizza recipe about two years ago. The success of the brand new pie has allowed the Ann Arbor, MI-based company to expand domestically and, most importantly, abroad.

To compete with the likes of YUM! Brands’ (NYSE:YUM) Pizza Hut and Papa John’s (NASDAQ:PZZA), Domino’s has to keep up with their competitors’ presence in large, international emerging markets such as China. This is why Domino’s international business has been essential to their growth recently. For example, Domino’s is seeing its fastest growth in India, reaching 400 locations in 2011.

Domino’s may only have an estimated international off-premise pizza market share of 11%, but Q4 same-store sales rose 4.7% internationally, indicating the chain’s forward momentum in emerging markets. With this momentum, by the end of the year, Domino’s expects the amount of international stores to surpass the amount of stores it has in the U.S. At the beginning of the year, Domino’s had 4,835 international stores and 4,907 U.S. stores. The company is looking to expand their global stores by 350 to 450 a year, up from their previous guidance of 250 to 300.

For the full story, visit Fox Business.

— Andrew Lander, InvestorPlace @andrewlander

Article printed from InvestorPlace Media,

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