June 19, 2013
Domino’s Pizza is the number one pizza delivery company in the United States and is one of the most recognizable pizza brands in the world. On average, Domino's sells over one million pizzas every day across the globe [1], and covers ten million miles per week in pizza deliveries[2]. At the end of 2007, there were 8,624 domestic and international locations- the vast majority of them franchised. In FY 2007, the company generated $1.4B in revenue and over $190M in operating income.
Domino’s faces several headwinds moving forward. Rising food and energy prices[3], the housing slump[4] and a weakening job market[5] are taking a toll on restaurant spending [6] in its core domestic market; the company saw a 1.7% decrease in comparable sales in the U.S. in 2007 after a 4.1% decrease in 2006 as consumers reduced their spending on pizza[7]. Rising food costs, especially the cost of wheat and cheese, have also cut into operating margins[8]. In order to meet these challenges and revive sales growth the company is launching a new marketing campaign under the slogan “You Got 30 Minutes" with the hope that this national advertising effort will help take market share from smaller, local pizzerias. The company is also trying to offset a weak U.S. market by focusing on expanding its international operations which continued to produce positive sales growth throughout 2007.
(Read more at Wikinvest
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