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Domino wants to dramatically increase the number of his American sites.
CEO Richard Allison discussed the plan during a conference call on the second quarter results Thursday. In anticipation of the expansion, the pizza chain is investing between $ 115 million and $ 120 million in its supply chain, more than expected.
Currently, there are approximately 5,650 Domino sites in the United States. Over the next ten years, Domino wants to open about 2,350 more.
Expansion plans follow a growth line. "In the future, we see an opportunity to take a large part in the industry," said Mr. Allison.
Same store sales increased 6.9% in the second quarter compared to the same period last year, mainly due to an increase in orders.
More stores will allow Domino to meet demand and strengthen its take-home business by getting closer to customers, said Peter Saleh, an analyst at BTIG.
Related: Why Domino's Win the Pizza War
Domino has been steadily growing for years, thanks in part to his interest in affordable meals. It has also accelerated its digital innovations. In recent months, Domino has begun offering delivery to around 200,000 hotspots – places like parks and beaches – that have no traditional address.
Without revealing how hotspots affected sales, Allison said "very satisfied with the launch and reception of customers". He added that new hotspots may have even helped expedite deliveries because they are more familiar to employees who abandon orders than a personal address.
Meanwhile, some of its competitors are struggling. Recently, Papa John ( PZZA ) was involved in a scandal on the use by its founder of a racial insult. Even before that, the chain struggled to keep up with Domino and Pizza Hut.
CNNMoney (New York) First published on July 19, 2018: 13:57 ET
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