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How Domino's Pizza Became a Technology Company

Posted: Sat Dec 21, 2024 4:00 am
by Abdur8
Domino's is one of the most famous pizzerias in the world, but did you know that it is also a technology company? In this article we will explain how digital transformation strategies have made Domino's grow exponentially in recent years.

Despite not being a recent story, I am impressed by how such an incredible business case like this is still not on the radar of so many executives and entrepreneurs. Even outside the knowledge of large companies that are restless and eager for clues on how to succeed and grow in the so-called digital world .

What makes this case even more special is not only the impact and expressive results, but imagining that the company came out of a period - from 2007 to 2009 - of falling sales, problems with franchises and the worst: a poor quality image of its products with customers.

In this article, I will objectively explore how Domino's Pizza anguilla email list 7582 contact leads managed, through technology, to increase its stock market value by +5,000% in less than a decade and become the largest pizza company in the world.

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Part 1: The results
Let's highlight some of the company's financial and performance results in recent years:

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Share price on the stock exchange: from US$4.97 (2009) to US$277.34 (2018);
Largest Pizza Company in the World;
Fastest growing brand in the US fast food segment;
Second largest American network;
Market share increased - from 9% of the US pizza market in 2009 to 15% in 2016 (NPD Cres Inc.).
1. Share valuation
Over the past decade, Domino's share price has appreciated more than the world's leading technology companies - Google, Apple and Facebook.

In practical terms, from January 2010 to June 2018, Domino's (DPZ) stock appreciated by 3163%, while Amazon (AMZN) rose by 1240%, Google Inc (GOOG) +364% and Apple Inc. (AAPL) +627%.

For those who preferred to buy shares in a pizza company rather than a technology company in 2010, the result was quite satisfactory:

And the growth was also surprising in relation to the 500 largest companies listed on the stock exchange:

In fact, according to some reports, when compared to all stocks listed on the stock exchange in 2010 with a market cap greater than or equal to US$1 billion (approximately 2.3K companies), Domino's has only failed to outperform three companies since 2010: Accelerate Diagnostics (Healthcare), Acadi Pharmaceuticals (Healthcare) and Patrick Industries (Furniture and Building Materials).