TV ads boost Domino’s

Article Excerpt

DOMINO’S PIZZA $11.16 (New York symbol DPZ; SI Rating: Average)(734-930-3030; www.dominos.com; Shares outstanding: 58.4 million; Market cap: $652.1 million; No dividends paid) rose sharply in January. The gain was mostly due to positive investor reaction to Domino’s new television ads for its new pizza. The company is aiming to increase its market share by changing its main pizza recipe. It will add seasoned crusts, as well as new tomato sauces and cheeses. The unconventional 15-, 30- and 60-second ads use a documentary style to show focus groups and Twitter users criticizing the old pizza, saying its “crust tasted like cardboard,” it was “totally void of flavor,” it was “worse than microwave pizza,” and the sauce was “like ketchup.” Domino’s plans to continue aggressively marketing the new pizza over the next several weeks. Its marketing plan includes television advertising and offering free samples of the pizza throughout the U.S. The company needs a continued economic recovery to post higher revenue and profits. But it’s well…