Domino's Pizza Analysis

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Dominos is a pizza restaurant that has grown from a single store front to being a recognized world leader in pizza delivery. In July 13 2004 the company’s IPO was revealed with a public offering price of $14 per share despite underwriters’ approval at $15-$17 per. The company has since undergone a series of fluctuating rates with today closing at $150.03 per share placing the increase from 2004 POP at 3400.75%.

As with every other investment decision we have made, we are to weigh the financial standing of the company against our judgement to see whether the decision to purchase stock would be a favorable one for us.

Thus this part of the presentation would be the evaluation of Domino’s pizzas financial statements

Dominoes Income Statement as reported by AnnualReports.com

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Extract from: https://materials.proxyvote.com/Approved/25754A/20160307/AR_274940/#/28/

After reviewing the income statement we were able to immediately identify that the company’s net income increases on an average of 19.3% with the highest rate of 27% from the 2012-2013 accounting period. With that being said, we were able to find out what contributes to the success of Domino’s pizza in increasing their revenues.

Outlined by president and CEO J Patrick Doyle in the company’s 2015 annual report, several things are responsible for their continued success in increasing revenue.

Global Store Growth

The company’s store count worldwide is now 12,530 following an additional 901 being opened last year (2015), with India leading the growth expansion at 159 stores. India has now broken the 1000 store milestone further promising more increase in sales and revenue. In the US as well 133 new stores were opened resulting in the company recording an all-time high in domestic store number increase in 15 years.

Robust Sales

Based on preceding years 2015 had a 12% increase in US same store sales driven primarily by orders and frequency. Also, international same store sales recorded a 7.8% increase in sales. This is a healthy sign of sustainability and organic growth further promoting the perception that we can expect to see further growth as a result of increased income.

Innovation in Technology

Recognizing and further acknowledging the presence of technology in our societies, Domino’s successfully implemented ordering from 15 different platforms with multiple devices. More than half the orders received by US stores are submitted digitally by customers. Internationally, it averages at 45% with some countries exceeding 60%. They’ve further retained the “innovative in tech title” with the introduction of a customized vehicle, the DXP: a specialized Domino’s delivery vehicle, complete with warming oven and Domino’s branding. Beyond the US many international franchisees are also driving digital innovation in their markets, like the Easy Order button in the UK and GPS Driver Tracker in Australia.