Domino’s Pizza Inc Leads Pizza Chain Growth Across The World

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Domino’s Pizza Inc (NYSE:DPZ) has seen very high growth since 2014, which took it to the top of global pizza chains in 2017 with respect to retail sales. Its operating margin has also continuously increased with 2018 seeing the highest jump in the last six years to 37.9%, ahead of Pizza Hut at 35.2%.

Here, Trefis compares Domino’s with the other top players in the pizza chain market across the world. For detailed analysis please see our interactive dashboard How has Domino’s Fared with respect to other Pizza Chains? In addition, here is more Consumer Discretionary data.

Domino’s leads in Pizza Sales for the last 2 years as Pizza Hut sales remain flat

  • Domino’s Pizza Inc retail sales grew from $12.7 billion in 2013 to $15.8 billion in 2018, at a CAGR of 4.6%.
  • Pizza Hut’s retail sales grew from $11.9 billion in 2013 to $12.2 billion in 2018, at a CAGR of 0.4%
  • Papa John’s International Inc retail sales grew from $3.1 billion in 2013 to $3.4 billion in 2018, at a CAGR of 1.6%

Operating Margins get higher with higher re-franchising

  • Operating Margins have increased at a steady rate for Domino’s till 2017 and seen a good jump in 2018 to 37.9%
  • Pizza Hut has seen a good increase post 2016  driven by refranchising. In 2018 the margin was at 35.2%
  • Papa John’s Operating Margin had been steady over the years with a sudden dip in 2018 to 1.9%, primarily due to the impact of lower comparable sales and the adoption of the new revenue recognition standards that revise the method of accounting for the customer loyalty program.

Pizza Hut leads Store growth with more than 18K stores across the world

  • Pizza Hut has the highest number of stores across the world at 18.4K.
  • Domino’s Pizza also has been continuously expanding its reach and has reached 15.9K stores in 2018 from just 10.9k in 2013.
  • Papa John’s has also increased its presence at a steady rate and had 5,303 stores at the end of 2018.

Yum Brands Inc has led the way in paying back their shareholders with $12.6 billion in buybacks in the last 6 years

  • The companies also have been continuously paying back the shareholders with dividends and re-purchase of stock.
  • Yum Brands Inc has bought back shares worth $12.6 billion in the last 6 years while Domino’s Pizza and Papa John’s have bought back stock worth $2.9 billion and $0.9 billion, respectively.

As shown above, Domino’s Pizza Inc’s revenue, operating margins, and reach has been continuously increasing. The company is also paying back its shareholders through dividends and repurchasing the stock. These factors have combined for the company to see its stock jump from $42 at the start of 2013 to $283 today.

 

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