Domino's Pizza (DPZ) shares climbed in trading as reports emerged that franchise store operators are increasing their spending on ingredients.
The development suggests that higher input costs are being effectively managed or passed through as the chain expands its menu offerings to capitalize on the World Cup.
Cityam reported that the pizza giant is battling for a larger slice of the fried chicken market, a move that has contributed to a jump in revenue.
Cityam reported that the pizza giant is battling for a larger slice of the fried chicken market, a move that has contributed to a jump in revenue.
The stock's advance reflects investor confidence in the company's ability to diversify its revenue streams beyond its traditional pizza core.
By leveraging the heightened consumer interest in casual dining and sports-related food consumption during the tournament, Domino's is attempting to offset potential softness in same-store sales growth.
The increased ingredient spend by franchisees indicates a willingness to invest in inventory to meet this anticipated demand surge.