Dominos (DPZ) CEO Doyle Sees Plenty of Int'l Potential, Would Like Easier Franchise Financing
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Dominos Pizza (NYSE: DPZ) is looking strong early Wednesday following a 4-cent-per-share Q1 EPS beat issued Tuesday morning, while sales rose 0.6 percent and U.S. comps improved 6.2 percent. CEO Patrick Doyle spoke with Jim Cramer late Tuesday to discuss the company.
Doyle noted that about 900 of the over-1,000 franchisees in the U.S. started within the company as a delivery driver or other ground-level employee, which shows the power of the Dominos system. He noted that there are many more who want to become franchisees, but the state of financing in the U.S. is putting a crimp on growth in that area.
Outside of the U.S., Doyle noted that there is plenty of room for Dominos to expand. He cites the potential to double stores in Japan and potentially quadruple its presence in France. Turkey has even become a surprisingly hot market, he said.
On advertising, Doyle said that Dominos is constantly evaluating the split between traditional and digital marketing. He explained that digital marketing has "tremendous analytics," allowing spending tweaks which allows them to match or even beat other forms of advertising.
Doyle plans on continuing Dominos dividend amid increasing cash flows and will decide in the future what other options might be right to return more value to shareholders.
Dominos is up about 0.2 percent early.
Doyle noted that about 900 of the over-1,000 franchisees in the U.S. started within the company as a delivery driver or other ground-level employee, which shows the power of the Dominos system. He noted that there are many more who want to become franchisees, but the state of financing in the U.S. is putting a crimp on growth in that area.
Outside of the U.S., Doyle noted that there is plenty of room for Dominos to expand. He cites the potential to double stores in Japan and potentially quadruple its presence in France. Turkey has even become a surprisingly hot market, he said.
On advertising, Doyle said that Dominos is constantly evaluating the split between traditional and digital marketing. He explained that digital marketing has "tremendous analytics," allowing spending tweaks which allows them to match or even beat other forms of advertising.
Doyle plans on continuing Dominos dividend amid increasing cash flows and will decide in the future what other options might be right to return more value to shareholders.
Dominos is up about 0.2 percent early.
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