Domino’s (DPZ), the Ann Arbor, Michigan-based pizza and fast food chain, has seen meteoric share price growth since Jan. 1, 2010. The company's shares on Nasdaq have risen 3635.63%, as of July 18, 2018. In fact, during that period the Domino’s stock has done better than Amazon Inc. (AMZN) up 1277.14%, Google Inc. (GOOG) up 285.03% and Apple Inc. (AAPL) up 828.47%.
The company released 2018 Q2 earnings on July 19, 2018. Domino's reported global retail sales growth of 12.6% in this past quarter. Domestic same store sales rose 6.9% and international same store sales rose 4.0%. The company opened 156 new stores this quarter.The company went public in 2004 and just four years later, was experiencing financial distress. How is it that today, it is doing so well? More importantly, with the company's president and CEO Patrick Doyle having stepped down on June 30, 2018, can the momentum continue under new leadership?
For Domino's, honesty did prove to be the best policy and it paid off impressively when it comes to performance in the stock market. In late December 2009, they released an ad campaign where they took responsibility for a product that was of sub-par quality and told the public that they had been working on improving what they have to offer. This was the start of their comeback story.
Prioritizing Convenience and Innovation
Accepting culpability was the turning point. However, that was only one of a few brilliant moves that took them to where they are today. They used technology to offer customers a myriad of ways to order comfortably and this was another reason why they went from struggle to success. For example, you can use Twitter, Amazon’s Alexa, Google Home and even Apple Watch to order a pizza.
Improving the product, convenience and delivery time helped change Domino’s’ trajectory. These moves helped the company with customer conversion. In 2017, revenue increased 12.76% from the previous year. (Read also: Domino's Creates Wedding Registry)
More than half of their employees globally are drivers who are committed finding new ways to be more efficient. In New Zealand, for example, they are testing drone deliveries. Domino’s is also paying attention to how customer preferences are shifting. Their new chain restaurants offer a nice environment where customers can sit down and eat their pizza. They are being diligent and making sure they keep being efficient so that they do not lose their edge.
On June 11, 2018, Domino’s announced in a press release that they will be filling in potholes in towns across the U.S. with a new "Paving for Pizza" initiative. They want to ensure a “smooth the ride home” for deliveries by making pothole repairs in towns nominated by their customers. The company has started the road repairs, working with municipalities including Bartonville, Texas, Milford, Delaware, Athens, Georgia, and Burbank, California. The city council of Jackson, Mississippi voted on July 18, 2018 to accept a $5,000 donation from Domino's through the campaign to fund pothole repair.