Domino's CEO Promises To Improve International Business, Says 'We Know How To Get This Done'
CNBC's Jim Cramer singled out Domino's Pizza, Inc. (NYSE:DPZ) as being one of a small handful of stocks investors "left for dead" but in fact have a lot of life left. Cramer followed Monday with his bullish stance on the pizza chain in an interview with CEO Patrick Doyle.
Doyle naturally agrees with Cramer's optimistic view of the company but did acknowledge investor concerns over a less-than-expected same-store sales growth in the international market. Specifically, international same-store sales grew just 2.6 percent in the quarter which was short of the company's own expectations of a 3–6-percent growth rate. Nevertheless, the company is committed to "work through it" and any woes are "fixable problems."
"There is nothing going on in the economies, anything external," the executive added. "This is about us executing, getting this right and we know how to get this done."
For example, Europe was singled out as showing "a little bit of weakness" but management now recognizes that the value proposition "wasn't quite right," Doyle continued. Meanwhile, the domestic business is doing "terrific" and highlighted by a 9.5 percent same-store sales growth.
Finally, one of the biggest trends in the restaurant industry today is consumers choosing to dine out less and order in more. Domino's is well positioned to capitalize on this trend given its history of "doing delivery for 57 years" and being "really good at it."
And so that service, convenience, everything continued to come together very, very well for us, so [the] domestic story continues to be absolutely fantastic," he concluded.
Image Credit: By Apatzi – Own work, CC BY-SA 3.0, via Wikimedia Commons
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