Domino`s Pizza

Domino's Pizza - Revenue and Performance Analysis

Introduction

Revenue and performance management is important so that company cannot experience any loss and indentify an area where the company is lacking their performances. The analysis of revenue and performance can highlights and overcome the problems the company is facing; these problems might be small and cannot easily be seen by the officers. Through this, the small areas are highlight and improvement in that area can leads the company to more efficient productivity. This paper focus on the Domino's Pizza - marketing analysis and trends business is experiencing.

Discussion

Overview of the Company

Domino's Pizza is the international restaurant chain fast food, the second-largest pizza restaurant chain after the “Pizza Hut” in the United States. Domino's Pizza has about 9700 corporate and authorized branches in 70 countries under the license of franchising. The company was founded in 1960 and is headquartered in Ann Arbor in the state of Michigan. The primary product offered by Domino's Pizza is pizza, but they also offer other dishes, appetizers and desserts. Their business activity covers the delivery of orders to customers. In 2012, Domino's Pizza chain had more than 9,000 food and beverage facilities, including over 3,000 outside the United States. The company is listed on the NYSE (symbol shares: DPZ) (Adkins T., Bailey V et al., 2010).

Financial Performance

Main revenue streams and profit streams of Domino's Pizza

The main revenue generated by Domino's Pizza is through the Royalties and sales to franchisees, Rental income on leasehold and freehold property and Finance lease income. The company has divided their business in the following manner through the revenue is also divided. Domino's Pizza sells around Over 9,500 Units Worldwide. The breakup has been given below (Domino's Pizza Franchising, 2012).

Over 9,500 Units Worldwide

 

 

Domestic Market

International Market

Global Retail Sales are of 50%

Global Retail Sales are of 50%

 

 

 

 

 

 

Franchised Stores - 4,496

Franchised Stores- 4,650

Company Owned Stores - 395

Non of Company Owned Stores

Company Owned Supply Chain Facilities - 19 Company Owned Supply Chain Facilities - 6

Domestic Market

 

 

International Market

 

Total Units 9541

 

 

LTM Retail Sales- Global 6.8 billion dollars

 

Franchise

96%

Franchise

95%

Company-Owned

4%

 

Company-Owned

5%

International

49%

 

International

50%

Domestic Market

51%

 

Domestic Market

50%

Domino's Pizza Operation in Country

Dominos has targeted almost the entire world through franchising their outlet. Dominos is prominent in US, UK, Canada, Australia, South Korea, New Zealand, France, Belgium, Netherlands and Ireland.

Domino's Pre 2009 Business Strategy

Domino's Pizza stated a fusion of new advanced-showcasing innovations and social media, coupled with predictable menu valuing techniques, will assist support the deals force the pizza chain has reveled in over the past two years.

Key strategies maintain consistency

For the sum of the profits that putting resources into new advances has carried, Domino's plans to keep numerous nexus advertising procedures predictable, Weiner and Doyle stated.

Starting in 2010, Domino's additionally reformulated its needed franchisee commitment to the national advertising reserve. Rather than a 6-percent eminence —part between a 4-percent commitment to Domino's for national promotions and 2 percent needed to be used on neighborhood and center ads —the association needed a 5.5-percent commitment that financed just national ...