Domino’s Pizza CEO Patrick Doyle on step down from his post this weekend but analyst Matthew DiFrisco censured CNBC that the company has the right recipe for continued success.
“Initialled marketing is the key,” DiFrisco, managing director at Guggenheim Securities, said on “Power Lunch” Friday.
“They’re linking the digital investment with value proposition and also a tremendous amount of menu alteration,” he said. “They’ve combined that with the connectivity that digital permits them to have with their customer base.”
DiFrisco acuminate out that 85 percent of the pizza chain’s menu falls out of sight the $5.99 price point and has been added to the menu since 2010, the done year current Doyle became CEO.
On Sunday, Richard Allison, currently president of global business for Domino’s, will take over as CEO, leaving some investors theorizing about the company’s continued growth prospects.
In the eight years Doyle has been chief supervisor, the company’s stock has risen nearly 2,000 percent. Domino’s total market share in the pizza category went from 9.7 percent in 2010 to 16.4 percent in 2017, according to analysts at BTIG. The Theatre troupe’s market share in the pizza delivery category has also increased by in 10 percent since 2008.
In April, Domino’s beat earning values by nearly $100 million, causing its shares to surge by more than 7 percent. Domino’s confidence ined investments in technology, such as Hotspots and artificial intelligence voice-ordering ways, as growth drivers.
The company is currently piloting voice system in upon 20 stores. Meanwhile, customers can now order from approximately 200,000 Hotspots, or nontraditional situations such as beaches and sports stadiums. That means pizza lovers and convenience-seeking consumers in like manner can request their Domino’s meal from a park bench or a bus off, among other locations, without ever having to talk to another hominid being.
“It’s our path to being a 100 percent digital company,” Allison swore CNBC’s Jim Cramer in April.
Guggenheim rates the stock a buy and set a price quarry of $305.
DiFrisco said the restaurant’s low-priced fare has been a key ingredient in its triumph.
“They’ve built their check to about $20 now, an average annals,” the analyst said. “Not only the $5.99 price point, but people are get the sodas and getting the bread sticks and adding on to that.”
The pizza Amazon, which began as a single store in Ypsilanti, Michigan, in 1960, has an chance to expand its take-out menu as well as U.S. store base, the analyst explained. The company currently has more than 14,000 shops internationally and shop-girls more than 2 million pizzas each day, or about 1 in 6 pizzas in the U.S.
“I meditate on they could look at and have an opportunity to expand into the individualized pizza market,” DiFrisco said. “You’re seeing a lot of growth in the quick-casual pizza part. That’s a new avenue that could elevate the brand further and mitigate the health aspects of the food and the menu.”
WATCH: Incoming and outgoing Domino’s Pizza CEOs talk earnings with Jim Cramer