Domino’s Pizza, Inc. (DPZ), Yum! Brands, Inc. (YUM): Global Growth

Domino’s Pizza, Inc. (NYSE:DPZ) is leaning on its franchisees and the entrepreneurial spirit to accomplish this. Domino’s international expansion model has been working wonders over the past few years. Domino’s sells a “market” franchise license for an entire country to one entity, and then it is up to that person or company to sub-franchise it out to local business people.

This model allows Domino’s to dictate standardized processes, while outsource the enforcement (and costs related to enforcement) of these rules, while allowing the country-level franchisee to make region-specific menu changes that appeal to their direct market. This model also allows Domino’s to step on the gas during its expansion phase while not creating a giant corporate bureaucracy.

Foolish bottom line

Domino’s has seen massive growth, and a corresponding run-up in its stock. Going forward, Domino’s still foresees massive growth in its international division. Domino’s Pizza, Inc. (NYSE:DPZ) leadership has stated that it is dedicated to continue rewarding its shareholders with an increased share price and increases in its newly issued dividend.

The article Domino’s Stock to Deliver Larger Slices to Investors originally appeared on Fool.com and is written by Wes Patoka.

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