How Domino’s Is Expanding Its Business


Oct. 18 2017, Updated 7:41 a.m. ET

Current operations

By the end of 3Q17, Domino’s Pizza (DPZ) operated 399 company-owned restaurants, 5,092 franchised restaurants, and 8,943 international franchised restaurants.

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Unit growth

During the past four quarters, Domino’s increased its overall unit count by 1,182 restaurants, which represents unit growth of 8.2%. DPZ continues to focus on franchising to expand its business. During the same period, the unit count of company-owned restaurants increased by 12 units, while the unit of domestic and international franchised restaurants increased by 206, and 964 units, respectively.

In 3Q17 alone, DPZ has opened 231 new restaurants, which includes three company-owned restaurants, 52 domestic franchised restaurants, and 176 international franchised restaurants. During the same quarter, the company closed two domestic franchised restaurants and 12 international franchised restaurants.

Technological advancements

During 3Q17, Domino’s announced that 70% of its international restaurants had installed Pulse point-of-sale systems and had installed the Global Online Ordering program in over 1,000 restaurants.

In the last week of August 2017, Domino’s had announced that it would be partnering with Ford to test self-driving pizza delivery cars in Ann Arbor, Michigan. The test will be carried out to understand customers’ response to this new initiative. These technological advancements and a strong overall brand experience are expected to drive Domino’s SSSG in coming quarters.

Next, we’ll take a closer look at Domino’s 3Q17 EBIT (earnings before interest and tax) margin.


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