Saturday, October 27, 2007

The Dots get the Hots

Domino's says Europe's fragmented market offers openings. Photo / <span class=
Dominos Australia wants
a slice of the Global Pizza
Market.


Doing what our domestic Pizza Franchisee with the Pizza Hut license, Restaurant Brands [RBD.NZX] couldn't do, Dominos Australia [DMP.AX]the Australian arm of US giant Domino's is successfully expanding overseas.

It will open at least 35 stores in Europe each year until it reaches 1000 stores, betting on rising demand for home delivered food.

Domino's has a total of 667 stores, with 404 in Australia, 65 in New Zealand and a combo of 198 in France, Belgium and the Netherlands.

Restaurant Brands [RBD.NZX] delivered appalling results when it bought the ailing Pizza Hut chain in Victoria Australia in 2000, with a total of around 60 stores.

Poor management was unable to turn company fortunes around and RBD has now almost finished selling their OZ arm after losing 10s of millions of shareholder dollars.

The pizza biz is a very competitive industry but if Domino's OZ expansion works then their slice of profits will get bigger.

Their approach to the New Zealand pizza market is far more aggressive and competent than RBDs and the signs look good for them to take it to Pizza Hut in a big way.

Domino's Australia is listed on the ASX .


Related Share Investor reading

Domino's Australia dominant in Australasia



Related Amazon reading

Getting Your Slice of the Pie: A Definitive Source for Prospering in Pizza

Getting Your Slice of the Pie: A Definitive Source for Prospering in Pizza by Tracy Powell
Buy new: $16.99 / Used from: $6.75
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c Share Investor 2007