Domino's Continues to Expand, Opens First Store in Bangladesh

Domino's Pizza, Inc. DPZ continues to expand its footprint globally to gain market share. Recently, the company announced the launch of its first store in Bangladesh. The store opening was accomplished through a partnership with Jubilant FoodWorks Limited and its local operator Golden Harvest.

As Domino’s earns a chunk of its revenues from outside the United States, the company remains committed to fortifying its presence in international markets. The company said that it plans to open more stores later this year.

According to Jubilant FoodWorks, Domino's has received a record number of orders during the first week of its operations in Bangladesh.

Strategic Expansion Bodes Well

Domino’s international growth continues to be strong and diversified across markets, courtesy of exceptional unit level economics. On the domestic and international front, the fourth quarter of 2018 marked the company’s 31st and 100th consecutive quarter of positive same-store sales, respectively. These apart, Domino’s inaugurated 829 net new stores in international markets during 2017 and 1,058 net new stores last year.

Furthermore, many international franchisees are consistently generating robust returns. Apart from the established markets such as Canada, Japan, Italy, the U.K., Ireland, Switzerland and South Korea, the emerging markets like Brazil, China, Indonesia and Turkey have been reporting solid growth. Australia, Russia, New Zealand and Saudi Arabia are also gaining momentum.

Meanwhile, India remains a market with immense growth potential. In fact, Domino’s India operations are one of the fastest growing operations in its global system. Additionally, the company’s entry into Slovakia and Malta is proof of its ever-expanding base.

Backed by an expanding global brand presence, shares of Domino’s have gained 32.4% in the past two years compared with the industry’s 37.7% rally.

Zacks Rank & Stocks to Consider

Domino’s has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Brinker International, Inc. EAT, Starbucks Corporation SBUX and Yum China Holdings, Inc. YUMC, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Brinker International has an impressive long-term earnings growth rate of 14.5%.

Starbucks delivered positive earnings surprise in three of the trailing four quarters, the average beat being of 6%.

Yum China Holdings reported better-than-expected earnings in each of the trailing four quarters, the average being 26.2%.

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