Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Domino’s Pizza, Inc. (DPZ): The Best Investment in Pizza

Page 1 of 2

“Our pizza stinks!”

That’s pretty much what Domino’s Pizza, Inc. (NYSE:DPZ) was saying approximately three-and-a-half years ago. Through an advertising campaign, the company admitted its foul-ups and promised to do better. The brilliance behind this concept was that Americans appreciate honesty. The campaign helped, but the improved pizza helped even more.

Domino's Pizza, Inc. (NYSE:DPZ)

Recently, Domino’s made further improvements. This doesn’t mean that Domino’s Pizza, Inc. (NYSE:DPZ) makes a good investment going forward, though.

The turnaround

After the financial crisis and an embarrassing event involving a worker being taped performing a disgusting act, it looked like Domino’s was on a dangerous path toward failure. Instead of giving up, however, the company planned its work and worked its plan.

Revenue and earnings have consistently improved on an annual basis. In the first quarter, revenue jumped 8.60% and earnings skyrocketed 65.90% year over year. Domino’s has now beat earnings expectations for four consecutive quarters.

Recently, Domino’s Pizza, Inc. (NYSE:DPZ) added a “Pizza Theater” to some locations which allows customers to watch the pizza-making process. This might sound like a simple feature, but what it really does is ease the concerns of customers in regards to what goes on in Domino’s kitchens. The best part is that you don’t even need to be at Domino’s to feel good about the pizza not being tampered with. Domino’s is busy enough that there’s almost always someone standing there, watching the pizza-makers work. Another neat feature is an electric board that will make it easier to track orders.

As if that’s not enough when it comes to strategic decisions made by management, Domino’s Pizza, Inc. (NYSE:DPZ) has been way ahead of the industry curve when it comes to digital ordering. Through all of its apps — now including apps for Windows Phone 8, iPhone, iPod Touch, and Amazon Kindle Fire — digital orders increased 5% last year. Domino’s even added a Spanish-language app to help maximize its digital ordering potential.

As far as online orders go, according to, the global traffic rank for has dropped 182 spots to 3,025 over the past three months. This might indicate a slight decline in demand, but it’s a very small move and shouldn’t play a big role in your investing decision-making process.

Dominos vs. peers

Domino’s pizza is currently trading at 27 times earnings, which is right at the industry average. It’s still more expensive than Papa John’s Int’l, Inc. (NASDAQ:PZZA) and Yum! Brands, Inc. (NYSE:YUM), however, which are currently trading at 24 times earnings and 18 times earnings, respectively. Domino’s does yield 1.40%, which is also a selling point.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!