Last quarter we highlighted Domino’s Pizza in Australia as a top contributor, and this quarter Domino’s Pizza U.K. (LSE:DOM) made it onto the podium. Similar to its Australian counterpart, domestic sales have been strong with double digit like-for-like sales‡‡ growth along with improved efficiency thanks to technological innovation. One key difference between these two Domino’s businesses is that international sales have been weak for Domino’s Pizza U.K. The company owns the master franchise for Germany, which has proven more challenging than expected. The good news is that expectations for a turnaround in the business have been removed from the stock and we continue to believe the long-term opportunity is tremendous.
From Wasatch International Growth (Trades, Portfolio) Fund Q4 2014 Commentary.
