What would have happened if you had invested a thousand d in Domino’s stock a decade ago?

A decade ago a network Domino’s Pizza Was in the midst of a rebranding process. Since then, the change that has taken place in the old pizzeria chain has become one of the biggest seen in the fast food field and in America in general. Thanks to a series of fundamental changes, the stock’s value rose from $ 30 to $ 480.

This week, the chain announced a drop in sales for the first time in a decade, and despite this, it seems that the upgrade process, which began in 2009 with the appointment of a new CEO, was a great success. According to CNBC News, for comparison, a $ 1,000 investment in the S&P 500 a decade ago is now worth just over $ 4,000.

It’s hard to attribute the transformation that Domino’s Pizza has undergone to one factor. The story begins with Patrick Doyle, who was appointed CEO of the chain in 2009, when the chain’s situation was not bright, to say the least. Domino’s stock traded for less than $ 10 and sales were very weak. So Doyle set the goal to change the chain On the face of it, and as a first step decided to change the recipe of the pizza, improve the quality of food and market the changes in an extraordinary strategy – when first the chain thanked its customers, in a marketing celebration in commercials and television, that there is indeed something to improve.

In addition, the network has undergone a process of digitization – building a website and app, and encouraging consumers to order through these, instead of the traditional way over the phone. This enabled the chain to streamline its operations: the cash flow to the branch in 2008, using the telephone ordering method, stood at $ 49,000, and jumped three times in one decade. This is how Domino’s managed to finance the network expansion easily without running to the banks for funding.

Additional actions such as investing in analysts and upgrading the delivery system have maximized profits. A decade later these moves have certainly proven themselves, and now, as mentioned, the chain’s veteran shareholders have made huge profits, and Domino’s has established its new place as the most dominant pizza operator in the United States.

By Editor

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