Domino’s Employed a Steady Domestic Growth Strategy from 2011 to 2016

Domino’s Employed a Steady Domestic Growth Strategy from 2011 to 2016

We track more than 850 chain concept companies including Domino’s Pizza.

The Domino’s chain for opening and closing activity in the US. Domino’s had a net location growth of 464 units during the 5 year period. Net openings grew steadily each year.

At year end 2016, Domino’s had 5,371 domestic locations. They grew domestic stores by 9.5% over the 5 year period.

Domino’s stock price has grown tremendously due to international growth. From 2011 to 2016 was the top restaurant stock performer.

We took a look at where the domestic growth took place. The domestic unit stability is the key to the company’s overall performance. We observed a broad move into lower population areas in the American heartland.

Our map shows the new openings in green and closings in red. Locations which were open in 2011 and stayed open are in yellow. Most of the closings took place in major metro areas. The less populated zones are where we find the green dots with very few red dots.

 We looked at the metro areas in the upper MidWest (Chicago, Detroit, Cleveland, St. Louis, Columbus and Cincinnati). On this map, you can see the stability with plenty of continuously open locations and openings and closings roughly equal. 

The New York to Boston map shows a similar pattern of stability.

It will be interesting to see how the move to growth in the less populated areas of the heartland works for Domino’s in the next 5 years.

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