Domino’s Pizza, Inc. (NASDAQ:DPZ) is one of the one of the stocks Jim Cramer was bullish on due to share buyback activity. Cramer highlighted that the company’s performance over the years, as he remarked:
“Fifth buyback monster, it’s another household name. It’s Domino’s Pizza… [It] has shrunk its share count by 38.2% since the end of 2015. That’s a lot. Domino’s is no longer the massive outperformer that it was from 2010 through 2021. The stock’s been pretty choppy for the past five years or so. But you know what? I think Domino’s can win in this current moment because it offers great value at a time when that’s what consumers care most about. We had CEO Russell Weiner on the show in October, and after he delivered a strong set of numbers, I thought he sounded very confident in the future. I believe him. I think it’s a buy now.”
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Domino’s Pizza, Inc. (NASDAQ:DPZ) operates and franchises pizza restaurants under the Domino’s brand that sell pizzas, sides, sandwiches, pastas, and desserts. Cramer discussed the company during the July 22 episode. The Mad Money host 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.”
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Disclosure: None. This article is originally published at Insider Monkey.
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