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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Excerpts Contd...

Domino's US - Experiencing the Downturn

While Domino's was successful in international markets, the company experienced a slowdown on the domestic front. In the US, in 2008, the pizza industry was witnessing a slowdown due to recession in the economy. As a result, a significant number of people remain unemployed while others had to suffer pay cuts...

Future Outlook

Domino's forecast flat same store sales for domestic and international markets combined in the fiscal year 2009.

The company reported that it was not sure whether the increase in sales in international markets would be sustainable due to the adverse foreign currency movements that would impact the royalties from franchises...

Exhibits

Exhibit I: Domino's Store Count and Growth in Number of Stores (2008)
Exhibit II: Annual Same Store Sales Growth and Annual Global Retail Sales Growth (2008)
Exhibit III: Domino's Selected Financial Data (2005-08)
Exhibit IV: Domino's Stock Price Chart (May 2008 - May 2009)

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