During the Global Investor Day presentation, Domino’s Pizza CEO Russell Weiner revealed that the company is successfully capturing market share from independent and regional pizza rivals, particularly in the face of rising competition across its global markets. Emphasizing the substantial growth potential in a large and fragmented category, Weiner outlined the company’s commitment to a value strategy to attract more customers.
In response to the surge of regional rivals, Domino’s has implemented a strategic focus on providing more value meals and increasing consumer promotions both in India and globally. The company sees these measures as crucial to fending off emerging regional pizza brands and maintaining its competitive edge.
Domino’s acknowledges the challenges posed by regional competitors and emphasizes the importance of expanding its store presence to counter the threat. Weiner stated, “We have addressed business challenges. If we don’t open stores, our competitors will.”
For the third quarter of 2023, Domino’s reported global retail sales exceeding $4.2 billion, evenly split between the US and other world markets. Looking ahead, the company anticipates India and China to be key drivers of international store growth in 2024. Domino’s aims to increase its India store count to 3,000 by 2029, up from the current 1,961.
Meanwhile, Jubilant FoodWorks (JFL), the company holding franchise rights for Domino’s Pizza and Dunkin Donuts in India, reported a 26% decline in net profit to ₹97.20 crore in the September quarter, despite a 5% growth in revenue to ₹1,368.63 crore.
Analysts from ICICI Securities noted challenges for JFL, stating, “We reckon that the recovery in the dine-in business is uninspiring, while operating margins remained under stress due to negative operating leverage.” The report highlighted potential downside risks, including inflation in raw material costs and increased competitive intensity in the market.
Over the past four quarters, western-style Quick Service Restaurant (QSR) companies in India have experienced slowing sales, driven by inflationary pressures on consumers and heightened competition from hyper-local brands.