Domino’s Pizza, Inc. (DPZ): Are You Ignoring This Restaurant Chain?

Pizza Hut has recently introduced its Crazy Cheesy Crust pizza in the US as a limited time offer. The company is trying to repeat the success story that it had in 1995 with its original stuffed crust pizza. This was also introduced as a limited time offer but it was so successful that it boosted sales by $300 million by the end of the year. It has remained on the menu since then.

In the value scene, Pizza Hut is making offerings like different lunch-combo meals to customers at $7.95.

Meanwhile, Papa John’s is also aggressively promoting its fare. One of the most adored products of Papa John’s is its Buffalo Chicken Pizza. It is a combination of the chain’s signature pizza and popular Buffalo chicken wing.

The chain is following an aggressive expansion strategy both in the US and overseas. During the quarter the company opened 34 stores, among which 17 are located in the US and 17 abroad.

There is good momentum in the chain’s international operations and Papa John’s is expecting to reach its 1,000-store landmark this summer. The international stores saw same-store sales growth of 8.2% in the first quarter.

Conclusion

Despite the tough competition, Domino’s Pizza, Inc. (NYSE:DPZ) has been able to hold its ground. Its strong franchisee-based structure ensures that it reads the local customer sentiments correctly and accordingly keeps menu innovations coming.

Easy accessibility through mobile and online sites, effective promotions, and an efficient delivery system that delivers within 30 minutes has given the company a solid competitive edge. Overall, Domino’s remains a compelling growth story.

Gaurav Basu has no position in any stocks mentioned. The Motley Fool owns shares of Papa John’s International (NASDAQ:PZZA).

The article Are You Ignoring This Restaurant Chain? originally appeared on Fool.com.

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