Its stock now trades for a rich 36 times the $5.40 a share it's expected to earn this year, according to analysts polled by FactSet Research Systems Inc., and any slowdown could hurt the shares. One of Domino's biggest challenges is maintaining that growth. It's all been reflected in Domino's skyrocketing stock, which closed Friday at $195.28 a share - a fiftyfold increase from late 2008. "They just didn't look great," and the remodels help sell more pies by enabling customers to better see the pizzas being hand-prepared, he said. The stores "needed a freshening-up," Doyle said in an interview. market - where it has 5,400 stores, including more than 500 in California - it accounts for only one of every seven or eight pizzas sold daily, and it plans to open roughly 1,000 additional domestic outlets.ĭomino's also is about three-quarters through a years-long project to remodel all of its stores, because 35 percent to 40 percent of its sales are still carry-out orders. Its biggest foreign presence? India, with 1,106 stores. The chain delivers more than 1 million pizzas a day and its global sales, including those of franchisees, totaled $10.9 billion last year, nearly double the $5.5 billion it posted in 2008. recently called "incredible."ĭomino's, which is almost entirely a franchise operation, also kept expanding worldwide and it recently opened its 14,000th store, in Malaysia. market for 24 consecutive quarters, a feat that analyst Brian Bittner of Oppenheimer & Co. Its same-store sales - or sales from stores open at least one year, a key measure of retail performance - have risen in the U.S. The Ann Arbor, Mich., company's revenue and profit have surged. Domino's also aggressively embraced digital technology to make ordering more efficient, customer friendly and maybe even cool. That's mainly because the chain completely overhauled its pizza recipe and rooted out poor franchisees. Patrick Doyle, Domino's has enjoyed a remarkable resurgence. Domino's even aired television ads acknowledging its problems, a public mea culpa in which the chain promised to do better. Investors weren't happy, either in late 2008, Domino's stock had fallen to a paltry $3.85 a share. Complaints poured in that a Domino's pizza crust tasted like cardboard and its tomato sauce like ketchup. The pizza delivery chain was under siege for its lousy food and mediocre service.
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