Thursday, October 25, 2012

This 464% Gainer Still Has Plenty of Room to Run: DPZ


Back in 1960, this Michigan-based company was purchased for $500. Today, it's worth billions. Over this same period, the company has grown from one store to thousands across the United States.
Today, Domino's Pizza (NYSE: DPZ) is the second largest pizza chain in America, behind only Pizza Hut, which is owned by Yum! Brands (NYSE: YUM).
Domino's also has a strong -- and growing -- international presence. It currently operates over 10,000 franchised and company-owned stores in 60 countries. In the most recent third-quarter, Domino's opened 121 new international stores. By the end of this year, management plans to open 500 new overseas locations.
In addition to international expansion, continual product innovation is helping drive growth. In 2011, the company changed its primary pizza recipe, adding a sweeter tomato sauce, higher quality cheese and a garlic-seasoned crust. This September, Domino's began offering deep dish pizza. According to Domino's CEO, 20% of U.S. pizza sales are deep dish, so Domino's is tapping into a large market -- one that not a lot of other pizza chains cater to. Online sales are also helping spur growth with over 40% of sales now taking place online.
All of these factors are helping drive the stock price up.
DPZ Chart
Shares have been on a major uptrend for the past three years, rocketing over 464%, from their November 2010 low of $7.09, to the current share price near $40. And the stock shows no signs of slowing down here.  (more)

No comments:

Post a Comment