Many people around the world eat a slice of pizza at least once a month some do it more. It can be good for you, is tasty and affordable. Given the wide choice of pizza and the shops that make it, it maybe a tough choice to pick your favorite. Sometimes you see chain stores and forget how big they are.
In an article by Juveria Tabassum of Reuters, Domino’s Pizza believes sales around the world will be a slower and trimmed its target for new international store openings.
Dominio’s Pizza Enterprises is the brand’s largest franchise and has more than 3,800 stores in 12 international markets. It is based in Australia and is expected to open 600 new stores down from 925 originally expected. The master franchise said it was rationalizing stores in Japan and France.
Elsewhere around the world, Domino’s has over 14,000 international stores.
In the US, there are about 7,000 stores and according to CEO Russell Weiner, Americans continue to look for value. The company expects sales to increase by 3% rather than 4.8% in the 2nd quarter. The company has refreshed its loyalty program and offers such as the carry-out boost weeks that provide a 50% week-long discount. The program will drop from 2 boost weeks in the quarter to one.
A company the size of Dominos depends on managing supply chain costs and last year was able to lower them, which helped the company earn a profit of $4.03 a share compared to estimates of $3.68.
Linking to dividend paying stocks, sometimes the brands you love or go to can move across the globe because people like it. There will be logistics concerns about opening branches outside the original market, but they can be overcome with time and growth of the brand. Sometimes what you like it, can make you money but homework is the key because many brands do not become international brands.
There are more questions than answers, till the next time – to raising questions.