The Gimmicks Work: Domino's Stock Increased 5000% in the Past 9 Years

Here's how they did it.

Domino's stock increase
Photo: Bloomberg / Contributor / Getty Images 

In 2008, Domino's prospects were not looking good: Its stocks were down to $3.85 a share. Then, in 2010, they released a television ad in which executives and employees of the company read harsh customer comments that alleged that the sauce tasted like "ketchup," while the crust resembled "cardboard."

Since then, the pizza company has closed its failing franchises and overhauled its pizza recipe, to staggering results, according to a new report from the LA Times. They've even introduced new technologically innovative ways of ordering pizza – including the ability to order a pie on Twitter, an app that let's you submit your order without touching your phone, and even let's you integrate your kitchen appliances with their system to let you know when your pizza has arrived – to attract a younger, tech-savvy generation of customers.

They've expanded their franchises all the way to Malaysia, opening their 14,000th store in April – with plans to open 1,000 more stores in the U.S. At the same time, they're remodeling their brick-and-mortar locations (even though 60 percent of all orders are placed online) to make them more appealing, allowing customers to actually the see the pies being made.

This massive makeover has helped company's revenue and profits soar in the U.S. for the past 24 consecutive quarters. Their global sales totaled $10.9 billion last year, doubling what it made in 2008 (a mere $5.5 billion).

Even more amazingly, Domino's stock has consistently outperformed Apple, Facebook, and Google in the past decade. On Friday, stocks were selling for $195.28 a share, 50 times more than they were selling for in 2008.

Whether or not the pizza actually tastes better doesn't seem to matter to customers, who are fueling the Domino's renaissance, but the LA Times reports that the sauce is spicier now, and that the once cardboard crust has been transfortmed into "a buttery crust with garlic and herbs."

Still have doubts? The company's president Patrick Doyle is himself a devoted fan: He eats Domino's pizza twice a week.

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