Domino’s Pizza, Inc. (DPZ): Online Channel With International Expansion Will Be the Growth Driver for This Pizza Company

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Papa John’s Int’l, Inc. (NASDAQ:PZZA) is also looking at international store expansion as a growth option in the future. It opened 280 international units last year and is expecting to add net 134 international units in FY 2013. The company is increasing its capital expenditure in 2013 to $55 million-$60 million, up from $43 million last year. This investment will be in company owned stores in the US and China. Its investment in a state of the art dough production facility and a quality center in New Jersey will help it to supply fresh dough and high quality ingredients in the Northeast region. These investments in store expansion and technology are expected to drive the company’s sales in the future.

Company P/S ratio Op. margin 1Yr. Fwd. P/E
Domino’s 1.75 18.08% 21.69
Yum! Brands 2.85 19.21% 18.48
Papa John’s 0.97 8.33% 18.33

Domino’s Pizza, Inc. (NYSE:DPZ) has been able to achieve an operating margin of 18.08% with a relatively low 1-year forward P/E ratio of 1.75. Yum! Brands, Inc. (NYSE:YUM) has a relatively lower forward P/E and the highest operating margin of 19.22 among these three peers. Papa John’s Int’l, Inc. (NASDAQ:PZZA) has the lowest forward P/E of 18.33 and P/S ratio of 0.97.


Domino’s Pizza, Inc. (NYSE:DPZ) is focusing on multiple online channels for orders and international expansion for growth. Its increased advertising budget is expected to increase footfall in its stores. Yum! Brands, Inc. (NYSE:YUM) has three brands with strong international store growth plans. Papa John’s Int’l, Inc. (NASDAQ:PZZA) is also investing in new stores and technology for sales growth. So, I recommend a “buy” for all the three stocks mentioned as long term investments.

Ash Sharma has no position in any stocks mentioned. The Motley Fool owns shares of Papa John’s Int’l, Inc. (NASDAQ:PZZA).

The article Online Channel With International Expansion Will Be the Growth Driver for This Pizza Company originally appeared on

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