Chanticleer
What Guzman y Gomez can learn from the Domino’s disaster
Domino’s’ latest market downgrade tells a story about long-term growth plans that investors in Guzman y Gomez should take note of.
In the lead-up to the float of Mexican fast-food chain Guzman y Gomez last month, countless column inches were spent comparing the kid on the bourse to former sharemarket darling Domino’s Pizza.
While both companies will be quick to point out the big differences between them – style of food, price, distribution channels (delivery versus drive-through), and business model (Guzman y Gomez owns its brand, whereas the Domino’s brand is owned by a US company) – Domino’s’ latest downgrade raises some interesting parallels between the two businesses.
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