Domino's (DPZ) Continues To Expand, Opens Store In Slovakia

Leading global pizza delivery company, Domino's Pizza, Inc. (NYSE:DPZ) is consistently trying to expand its presence worldwide and gain market share. In fact, the company stands out as the market leader in the delivery segment in the United States, and ranks second in the carry-out segment.

Notably, since Domino’s earns a chunk of its revenues from outside the United States, it remains committed to accelerate its presence in high-growth international markets.

Taking the growth story forward, Domino’s recently opened its first store in Slovakia. The master franchisee for Domino's Slovakia, Daufood, has opened the store in collaboration with its local franchisee APIM Gastro, which is led by Ivan and Mario Apostolov.

The outlet features the brand’s Pizza Theater store design, which offers a comfy lobby, open-area viewing of the food preparation process and the ability to track carryout orders electronically on a lobby screen.

In fact, residents in the capital city of Bratislava will now be able to order their pizzas online and even get deliveries by electric bikes.

Meanwhile, the company’s international growth continues to be strong and diversified across markets driven by exceptional unit level economics. In fact, many of the international franchisees continue to generate robust returns.

Apart from established markets such as Canada, Japan, the United Kingdom, Ireland, Switzerland and South Korea, emerging markets like Brazil, China, Indonesia and Turkey have been posting strong growth. Australia, Russia, New Zealand and Saudi Arabia are gaining momentum as well. In the meantime, India remains a market of immense growth potential for the company. In fact, Domino’s India operations are the fastest growing operations in its global system.

Markedly, the second quarter of 2017 marked the 94th consecutive quarter of positive same-store sales in its international business. Currently, the company has operates in excess of 14,200 stores in over 85 international markets with more than half of its global retail sales coming from international stores.

However, given its sizeable international operations, Domino’s is exposed to risks of fluctuations in currency exchange rates, which might impact the company’s top line. Higher costs further add to the concern.

Also, a challenging industry backdrop remains a potent cause of concern for most restaurant chains like Jack in the Box Inc. (NASDAQ:JACK) , BJ’s Restaurants, Inc. (NASDAQ:BJRI) , The Cheesecake Factory Inc. (NASDAQ:CAKE) and many others. Though Domino’s has been faring well so far, the continued slowdown in the industry at large might hamper its prospects, going forward.

Regardless of certain headwinds, Domino’s operational advantages, given its market share and scale, along with insistent focus on innovation and global expansion to attract new customers are expected to keep driving growth.

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