Domino's Essay

Dominos is dominating the pizza industry, currently trailing behind Pizza Hut yet being predicted in the next year to become to pizza industry leader. Pizza hut in 2016 led Dominos by .7% in share of sales, but because Domino's is being named the most technologically advanced pizza chain in the industry, it is expected to surpass the current leader in the next year. Domino's has capitalized on online orders, digital delivery services, and has reported an investment of $12 million in its past fiscal quarter, just improving its technology. In today’s age technology is king, and while Pizza Hut made a bet on improving its stores in the past few years, Dominos invested in technology to improve the ease of delivery. We can all agree, it’s much more efficient to spend just a few minutes ordering online, than it is to leave your home, and drive to the nearest store to suffice your pizza loving needs. While Pizza Hut is still the largest chain in the United States, Domino’s is dominating the competition in growth and is being more Domino's continues to grow, in the past year Domino's has added 1,281 stores, equaling on average, a new store being opened every seven hours, while also increasing international same store sales by 6%, and domestic same store sales by nearly 11%! Even more impressive, Domino’s has increased its franchise profitability enormously for eight consecutive years, reaching a new high in 2016 with $130,000 per store. This pizza mogul also obtains exceedingly strong shareholder returns, which is very appealing to investors. In the past 10 years Domino's has paid out nearly $2.7 billion dollars to shareholders. From 2015 to 2016 Domino's has approached nearly $11 billion in annual sales, and a 24% increase in EPS, at $4.30. This change was the result of share repurchases, lower diluted share count and an increase in net income. In 2016 they repurchased nearly $325 million …show more content…
This was a result of higher domestic and international revenues, greater supply chain volumes, and an increase in same store sales. While increasing revenue, Domino’s has also decreased cost of sales by .2% with respect to revenue. On a negative note, Domino’s has very slightly decreased liabilities <1%, while commodiously decreasing assets by nearly 10.5%. The majority of the total asset change resulted in the decrease of cash equivalents, bearing nearly …show more content…
In its fourth quarter its same store sales rose over 12%, being followed by Papa John’s, the only other pizza chain to show growth during its last quarter, at a measly 3.8%. Over the past three years Domino’s also obtains the largest cumulative same store sales growth at a massive 38%. This is a result of technology, 60% of both Papa John’s and Domino’s orders now come through a digital channel. Technology is becoming dominant in the pizza industry, while in store sales are now on the path of becoming obsolete. Domino’s most recent addition to its momentous tech system now includes things such as ; Amazon Echo, no-touch ordering, and orders via television or watch. Outside of the digital aspects, Domino’s introduced a unique piece of technology, the oven car - a vehicle that contains several different ovens that keeps the pizza hot while it's being delivered to the customer. Domino’s stock has risen nearly 177% in the past three years, this is a result of its investments in international growth, 6.9% growth for the year, and technology, both proving to be