However, it cannot conclusively determine the future direction of the stock. It's commonly used to predict Dominos Pizza's future behavior based on its past. There are two main types of Dominos Pizza's volatility: Historical VolatilityThis type of stock volatility measures Dominos Pizza's fluctuations based on previous trends. Investing in highly volatile security can either be highly successful, or you may experience significant failure. A highly volatile stock is riskier, but the risk cuts both ways. A stock with relatively stable price changes has low volatility. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. Investors will then calculate the volatility of Dominos Pizza's stock to predict their future moves. These fluctuations usually indicate the level of risk that's associated with Dominos Pizza's price changes. Sign up here.Volatility refers to the frequency at which Dominos Pizza stock price increases or decreases within a specified period. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Members help make our journalism possible. But we might get hit by a few stray bullets.”

They’re going to keep advertising, continue to keep discounting, because they don’t have a choice. “They’re standing in a circular firing squad right now. “We don’t know how these folks are going to behave,” he said, noting that the company is still expecting delivery promotions to influence its sales. Our alignment and focus on the system is more important than ever as we face new competitors that are not bound by the constraints and requirements associated with a profitable business model.”Īllison believes the promotional environment will continue this year, even as profit pressures on third-party delivery players continue. He said the company faced “an unprecedented acceleration of competitive activity around delivery. “If we were not growing our sales, profit would be declining.”Īllison made numerous references to profits of the company’s third-party delivery competitors, which spent much of 2019 offering more deals to generate user growth.

“It’s a really tough environment from a profitability standpoint,” Allison said. He said that the company is “intensely focused on helping to drive efficiency and profitability at a store level for franchisees.” Yet Allison acknowledged “challenges” in the operating environment as labor and fixed costs continue to rise. The company said that restaurant-level earnings before interest, taxes, depreciation and amortization for franchisees would be “more toward the high end” of its predicted range of $136,000 to $139,000. The company has been “fortressing” markets or building more stores closer together.Īllison said on Thursday that fortressed stores provide “faster and more consistent service, lower delivery cost, better economics and incremental carryout.”ĭomino’s strong sales growth has been good for the company’s domestic operators. In the U.S., the company added 250 restaurants, reaching 6,126. Globally, Domino’s added 1,106 units over the past year, reaching 17,000 worldwide. That period has turned Domino’s into the biggest pizza chain in the world and one of the strongest-growing large restaurant brands of any kind. The company hasn’t had a negative comparable-store number since 2011. He also said the company’s carryout promotions worked well and “drove terrific results.”Īllison acknowledged some things that didn’t work, notably its late-night promotional program, though he said it drove sales in certain markets.ĭomino’s domestic same-store sales have risen for 35 straight quarters. The program “resonated well” with customers, they said. “We felt like that leveled off a bit relative to the third quarter, but that pressure is still there and quite intense.”ĭomino’s executives credited some of the company’s efforts in the quarter, notably its “delivery insurance” promotion guaranteeing a quality experience on delivery orders. “Certainly, we still saw a lot of aggregator promotion and advertising activity,” CEO Ritch Allison said. Speaking on their fourth quarter earnings call Thursday, Domino’s executives said the promotional activity from third-party delivery players appears to have leveled off, even as it remains “intense.” The stock hit an all-time high of $380 per share Thursday before settling in the $370 range. Yet same-store sales on delivery orders improved in the fourth quarter, while the chain’s growing carryout business continued to accelerate.

Dominos stock