Domino’s Pizza (DPZ) Q2 2017

J. Patrick Doyle – Domino’s Pizza, Inc.

Pizza business growing faster outside the US

“…international markets in general are actually less competitive in pizza than our domestic market on average. There are certainly exceptions to that, but the category is growing faster outside of the U.S. than inside the U.S. The competitive set is generally less restricted and 95% of the people in the world live outside of the U.S. and the pizza category is probably a little over double the size internationally what it is in the U.S. So clearly far less-developed, less competition, more opportunity to grow.”

Small players have a scale advantage

“The broad story remains the same that it has been domestically, which is larger players taking share from smaller players. And certainly we’ve been doing better than the rest of the large players over the course of last few years. But I still believe that the longer-term story is the competitive advantage that scale brings to the larger players versus the smaller players.”

Wage pressure won´t be passed on to customers in higher prices in the short term

“There is pressure out there on wages in general as the labor market continues to strengthen and that’s a really high-class problem. When strength in the labor market is putting pressure on rates that’s the way you want to see it working and we are always going to be conservative about reacting to that with pricing to our customers….We pay what we need to pay to keep our stores staffed and give our customers great service….It may have some effect on margins and then we kind of fine-tune pricing where we can but we want to be conservative around that

Yum China Holdings (YUMC) Q2 2017

Micky Pant – CEO

Growing delivery sales

“On previous calls we have highlighted our growing strength in digital and delivery and we have continued to make progress in this vital strategic frontier. With over 4900 restaurants offering delivery service total delivery sales in the quarter reached $200 million which is about 13% of our total company sales.”

Towards cashless payments in china

“Mobile payment represented about 40% of our total company sales and cashless payment reached a record of $900 million in Q2 alone…If you now come to China and visit a KFC you will be surprised of the number of people not standing in line but actually ordering on their phone just like you would at an airport where you check in at a machine.”

Jacky Lo – Interim CFO, VP, Controller and Principal Accounting Officer

Looking for solid same-stores growth

“we expect our labor inflation to continue in the high single digit range and commodity inflation to be in the low single digit….in order to cover our inflation and maintain our margin, we need solid same-store sales growth….on the commodity price or specifically chicken price, commodity inflation was 4% during the second quarter and the rate peaked at 4.5% in the first quarter, this came out to 4% in the second quarter and we expect it to continue to moderate throughout the rest of the year.”