13 Stocks Jim Cramer Looked At

8. Domino’s Pizza, Inc. (NASDAQ:DPZ)

Number of Hedge Fund Holders: 45

Domino’s Pizza, Inc. (NASDAQ:DPZ) is one of the stocks that Jim Cramer looked at. Cramer mentioned the stock during the episode and suggested that a stock split could be good for the company. He said:

“Sometimes a company reports, and Wall Street can’t seem to decide whether to send the stock in question higher or lower. That’s exactly what we saw yesterday morning when we got results from… Domino’s Pizza… and the market’s initial reaction was overwhelmingly positive… Throughout the session, Domino’s flipped through positive, negative, positive, before ultimately closing lower by less than 1%. Then today it rallied… Okay, I thought this was a good quarter…

I’m much more focused on the market share gains and strong same-store sales… Stuffed crust pizza isn’t anything new, but apparently Domino’s did it very well because this was the biggest launch in company history, exceeding all of management’s expectations… I think it’s helping them pick up some market share. At the same time, Domino’s represents a terrific value proposition… See, Russell (CEO Russell Weiner) was spot on about the company’s growth drivers in the second quarter when I spoke with him in April.

I bet he’s correct when he says he’ll be able to leverage the scale of this chain to continue delivering growth in the future. That’s something the bears seemed to overlook yesterday, but it appears the market’s starting to recognize it today as the stock really was roaring back… I think that people are underestimating when he says things are the best ever, he means it.

Bottom line: I like what I’m seeing from Domino’s and trust that management can use all the tools at their disposal to sustain their growth, which means this stock could have quite a bit more upside. The only thing that may be missing, listen, Russell, is a stock split. Now I know splits don’t create any actual value. I know the institutions don’t like them, but the same people who buy Domino’s Pizza would be willing to buy the stock if it was 48 instead of 480. Come on, Russell. Show those institutions that you work for, the shareholders and the pizza buyers, who often are the exact same people.”

Domino’s (NASDAQ:DPZ) operates and franchises stores, providing pizzas and a variety of food and beverage items under the Domino’s brand through a global supply and delivery network.