When you think about the stock market, you could believe that companies such as Apple and Amazon would have the best performing stock. Surprisingly, the company that outperformed all these major companies is Domino’s, a pizza delivery service that has affiliates across the globe! Curious to find out how Domino’s has outperformed multinationals such as Amazon and Apple? Read on to find out!
The 2010 Dilemma
In 2010, investors had the choice between two major stocks, Google and Domino’s. Even though Google seemed like the obvious choice, Domino’s still outperformed this company. The price of Domino’s stock has outperformed even the largest tech companies in the world over the last decade, so investors who chose Domino’s stock over Google now have a big smile on their face.
Investors who put their money in Domino’s stock at the beginning of 2010 have seen the value of their stock grow by a whopping 2000%, leaving other companies such as Facebook, Apple, Google and Amazon far behind. Of course, the reason why Domino’s has performed so well can be explained by the changes made to the product Domino’s offered, because the product has been one of the main reasons Domino’s has outperformed most companies.
Even though people always need food, there are more reasons why domino’s is doing so well. Domino’s stated that their key to success is a constant evolution of the company. They claim to make improvements when they are needed and always delivery a quality product to the customer, which has certainly had a positive effect on the value of their stock.
Changing the Quota
Domino’s wasn’t always the best pizza delivery service, because the company used to be known for their low-quality pizza combined with quick delivery. Unfortunately, poor quality pizza did influence their customer base and made their client base somewhat fickle, so the company was in dire need of a change.
To improve their product, Domino’s searched for a new pizza recipe and added numerous sides such as chicken wings, salads and desserts. The improved quality did come with a higher price tag, since most pizzas from Domino’s are more expensive than their competitors. However, the company does provide deals that allow customers to get a nice discount. Of course, the deals could also be a contributing factor to the success Domino’s has been experiencing over the years.
Only four other companies could outperform Domino’s in recent years, although one of these three companies outperformed them for only a short period. Not surprisingly, Netflix is the biggest stock competitor of Domino’s, but since watching movies and pizza go together, there is no reason why these two companies cannot co-exist on the current stock market.
Only Patrick Industries, ACADIA Pharmaceuticals and Accelerate Diagnostics outperformed Domino’s at the start of 2010. Still, the difference between ACADIA Pharmaceuticals, Accelerate Diagnostics was only minor. The biggest difference lied between Domino’s and Patrick Industries, but given the improvements Domino’s has made, it is now at the top of the stock market! So, if you are looking to make some money, you could invest in the Domino’s brand if you can make the investment.