Domino's CEO rides off into the sunset after leading one of the greatest turn arounds of all time
- Domino's Pizza CEO J. Patrick Doyle delivered his last earnings call after leading the company for eight years.
- The pizza chain beat Wall Street estimates on both the top and bottom lines.
- Shares gained have gained 1,700% over the last 8 years, skyrocketing past peers and even tech giant Amazon.
- Watch Domino's Pizza trade in real-time here.
Domino's Pizza CEO J. Patrick Doyle rode off into the sunset with a bang after the pizza chain reported strong first quarter results.
The pizza giant earned $2 a share on revenue of $785.37 million. That was well ahead of the $1.77 and $$691.56 million that Wall Street analysts were expecting. Same store sales in the US grew 8.3% while the international division grew by 5%.
But those results were just the icing on the cake. Since Doyle took over as CEO in March 2010 (he joined the company in 1997), Domino's market cap has exploded by 1,700% from $816 million to nearly $10.5 billion. That makes it one of the top performers over the past eight years. If Domino's were in the S&P 500, it would be number three in terms of performance, trailing only Netflix (+3,095%) and United Rentals (1,814%).
So how did Doyle do it?
Domino's turn around story started with Doyle taking the helm in March 2010 after the chain suffered through the depths of the financial crisis. Doyle reinvented the brand by making three important changes: reinvented products, international expansion, and a new marketing strategy.
The company came out with a new recipe in 2010 and expanded their menu. Adding "specialty chicken" strips ordered alongside pizzas drove up average ticket sales according to Doyle. It launched the Handmade Pan Pizza, new pizza toppings, and salads over the years. As a new CEO in 2010, he appeared in a series of candid ads that addressed complaints about the pizza's recipe.
Doyle pushed international expansion in places like Brazil and India. In 2012, he set a goal to have at least 1,000 locations in India. Domino's had only 440 at the time. Within 4 years, that goal was met. The pizza chain now boasts stores in over 85 international markets.
In addition, Doyle brought in Russell Weiner from Pepsi to implement a self-deprecating marketing strategy that's won over customers. From the easy order button to its loyalty program, the company has rolled out a series of new initiatives over the years to drive growth. In early April, the company launched a mobile game to give loyal customers a way to earn points toward free pizza.
Not bad for a guy who was previously in the baby food business.
Doyle will step down at the end of June, giving way to Richard Allison, president of Domino's International.