Domino's Pizza - Strategies to Tackle Global Economic Slowdown

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Case Details:

Case Code : BSTR334
Case Length : 17 Pages
Period : 2007-09
Pub Date : 2009
Teaching Note :Not Available
Organization : Domino's Pizza Inc.
Industry : Food and Beverages
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

Domino's reported improved fourth quarter results for its international business. This marked the 60th consecutive quarter of growth in international same store sales⁶. However, it announced a decline in domestic growth for the last quarter of 2008 (Refer to Exhibit II for Domino's Same Store Sales Growth and Retail Sales Growth in domestic and international markets for 2008 and to Exhibit III for Selected Financial Data of Domino's).

Commenting on the fiscal 2008 financial results, David A. Brandon (Brandon), Chairman and CEO, Domino's, said, "Throughout 2008, we battled many external challenges while laying the groundwork for better future results.

I have mixed feelings about our overall results. I am disappointed with our domestic sales performance and the pressure this created on our short-term profits. However, I am excited about the aggressive steps we have taken to improve our franchise system, expand our menu and lunch day-part, and strengthen our marketing. And, our International business continues to expand and grow. The current economic crisis has been challenging and at times, painful. However, I am convinced we will come out of this a stronger brand, stronger system of stores, and a stronger company."⁷...

Excerpts >>

6] Same store sales refer to sales generated by the stores that have been opened for more than a year. It is the historical data using which sales in a particular year can be compared to the sales of previous year.

7] "Dominos Q4 2008 Financial Results," www.dominosbiz.com, February 24, 2009.

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