Company Analysis Domino's Pizza

Food and Beverages / Domino’s Pizza Inc. [NYSE:DPZ]

The Company

According to company’s reports Domino’s Pizza, Inc., is the “number one pizza delivery company” in the US, and the second largest in the world. Revenues are generated from “domestic stores”, “domestic supply chain” and a network of international franchise and net stores. The company specializes in Pizza production and delivery, and their stores are designed to optimize this process. So they are normally not for dining-in. This way they save on maintenance, infrastructure, personal and related costs.

Domino’s Pizza, Inc. Income Statement, taken from Google Finance

In the last years the company has made important achievements with campaigns like “Oh Yes We Did”, as well as by implementing proprietary point-of-sales software (“PULSE”) and broadens their products palette, among other. This has greatly contributed to the notorious improvement in revenues during the last two years. Likewise profit margins have been improving steadily. Operating margin did also improve.

Domino’s Pizza has many competitors in international and local basis. As main competitors is it possible to mention Pizza Hut, Papa John’s and Little Caesar’s Pizza in the US; internationally the main competitor is Pizza Hut (owned by Yum!).

However Domino’s Pizza orientation to the production and delivery of their products gives the company advantages over the competition. Stores can be strategically placed and are normally small, since they are not designed for dining-in.

The recent addition of new products like the “triple-cheese pizza” in India, chicken-pizza in Australia and strudel dessert in Mexico, as well as the “Stuffed Cheese Bread” in the US and “Artisan” pizzas as new product lines sets the company’s “focus on the food”.

Actually one third of the domestic sales are originated online, based on the proprietary software that the company has implemented. There is already a mobile version for iPhones and the company is...