Domino’s (DPZ), the Ann Arbor, Michigan-based pizza and fast food chain, has seen a meteoric share price growth since Jan. 1, 2010. The company's shares on Nasdaq have risen 2469%, as of January 9,2018. In fact, during that period the Domino’s stock has done better than Amazon Inc. (AMZN) up 828%, Google Inc. (GOOG) up 272% and Apple Inc. (AAPL) up 522%.

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, as the company's president and CEO Patrick Doyle steps down in June 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. (Read Domino's Creates Wedding Registry)

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 2009, Domino’s had a 9% share in the pizza restaurant market which increased to a 15% share in 2016, according to NPD Crest. In 2016 alone, sales increased by 10.5%. 

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 and that they do not lose their edge.

It was very risky move for them to admit at the end of 2009 that their product was not good. But the way the ad campaign was executed and supported with improved options for customers to order started the takeoff of a commercial strategic success.

 

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