Fast-foods, Domino's Pizza, Del Arte, Pizza Hut, Papa John's Pizza, marketing strategy, franchisee, food delivery, digital advertising, supply Chain management, marketplace, Covid 19, viral campaign, debt ratio, Porter's five forces, fast-food brand, McDonald's, KFC, Burger King, Starbucks, Allo Resto
After a slight decline in performance since mid-2022, Domino's Pizza is starting to perform well again and this leads us to believe that for the year 2023, new marketing strategies will be put in place to continue to have good growth.
Domino's Pizza has released its results for its first quarter of 2022. As a result, the U.S. pizza specialist reported net income of $121.6 million for the period, or $3.07 per share, compared with net income of $92.7 million, or $2.20 per share, a year earlier. For its part, sales came in at $873.1 million in the first quarter of 2022 (+4.4%), compared with a consensus of $669 million, which suggests strong growth in online sales. Domino's will therefore have to find new solutions to increase its production in less time (making pizzas in a short time and faster deliveries)
However, same-store sales grew by only 1.6% in the United States, compared to a consensus of +2.2%. With more than 3,000 units abroad, Domino's will have to increase its production force abroad: train and transmit the parent company's values to the franchises.
[...] The main brands are, for example, Del Arte, Domino's Pizza and Pizza Hut. In a global pizza market of 132.3 billion dollars in 2022, down 14.5% compared to 2021 because of the health crisis, but the market should be back on the rise, according to forecasts based on the beginning of 2023. The main growth drivers include the digitalization of the market and the rise of online sales, vending machines, innovation and differentiation, as well as the move upmarket of products, with a "premiumization" of the offer, especially with the increasing use of high-end products (truffles, for example) or the development of organic, gluten-free or vegetarian pizzas. [...]
[...] Far from being discouraged, Domino's Pizza is multiplying its innovations. The company has just launched a year ago new features on its online ordering platform such as, for example, the arrival of the My Pizz' tab where the customer can compose his own pizza or the online payment tool. If these new features are already present in the competition, the company took its time because "we had to standardize the network with a single digital system", says Nicolas Degeraud, marketing director of Domino's Pizza. [...]
[...] Today, the company offers a hybrid form of service, at the crossroads between cuisine and unparalleled user experience thanks to the contribution of new technologies that Domino's has mastered to perfection. Segment Analysis and Growth Domino's Pizza has revenues from three main segments: physical store sales, franchise fees and supply chain. Domino's revenues in the U.S. are largely responsible for the company's overall revenue growth. The physical stores are a significant contributor to the company's revenue and franchise fees are the second-largest contributor. The franchise share is approximately $300 million. [...]
[...] With a concept based on delivery, Domino's Pizza is the leader in its field. Due to the COVID-19 pandemic, sales were $873.1 million in the first quarter of 2020 compared with a consensus of $669 million. However, same-store sales grew by only 1.6% in the United States, compared with a consensus of +2.2%. In light of the Covid-19 crisis, Domino's Pizza withdrew its medium-term sales growth targets, but is focusing its marketing strategy on innovation, which has allowed it to be one of the few companies to experience a positive rebound after the pandemic. [...]
[...] We can consider that a higher debt ratio tells us that the vast majority of the debt is financed by the assets. Thus, the higher the debt ratio, the more likely the company is to default. The ratio in this industry is 16, so we can see that Domino's has good debt. Porter Analysis Porter's model was born in 1979 and aims to evaluate the competitive positioning of a company in 5 strong points. These points complement the SWOT analysis, which is often used but lacks rigor, according to Porter. [...]
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