Restaurants have had a really difficult time economically during the pandemic. There have been reports in mainstream media that many thousand restaurants across the US may have to close permanently due to the industry’s shock from the pandemic. The strong food businesses are the ones that may end up surviving and growing. Dominos could be one of those stronger companies. The delivery model worked well for pizza and fast food chains as lockdown restrictions allowed for delivery and take-away. The restaurants with a sit-down model were the ones that suffered more. Dominos has a strong balance sheet, a strong brand, and a worldwide presence. It is a restaurant’s stock to buy and one that investors should consider.
Dominos Pizza – The No 1 Delivery Pizza
Dominos became famous for its guarantee to deliver pizza to customers in 30 minutes flat. This advertising campaign first began in 1973. Though the guarantee was later dropped in the US, it still continues in many other countries. Some other quirky marketing campaigns include the company repairing potholes on American roads so that its pizza would not get damaged during transit. Dominos was founded by James Monaghan and Tom Monaghan in Michigan in the 1960s. The company’s first logo had three dots on it representing the three stores that the company owned at the time. The company used franchising as a route to expansion and had 200 stores by 1978. Over the years, the company has expanded in the US and internationally. Today, Dominos has more than 17,000 stores globally. It is among the top restaurants stock within the industry globally.
Dominos Pizza went public in 2004. It trades today on the New York Stock Exchange under the ticker symbol DPZ. The stock was trading at $426 on 28th May 2021. It was up 1% over the preceding 30 days.