If you are seemingly a normal average person, you likely ate pizza at least once last year (probably more) and you may have asked what about the price of the shares of the companies? The shares of Domino’s Pizza were up 45% last year and Papa John’s International was up 60%. According to Leslie Patton writing for Bloomberg News the answer to the why is pizza is cheap, fast and increasingly very, very easy to get. Restaurants including the Pizza giants have embraced user-friendly mobile ordering apps where customers can order from Facebook, Twitter and Apple TV. Besides the ease of order, the pizza chains have rewards programs and ensured that although the pizza at the supermarket maybe a little less, the fresh easy pizza taste better.
Same store sales are up at Domino’s and Papa John’s which means all the restaurant chains are trying to make it very easy to order their food. At the moment, they are not as good and easy as the pizza chains. Next time you order pizza, try to understand what they are doing to keep your patronage.
Linking to dividend paying stocks, going out for meals is an accepted practice with consumers but where do they go? the Pizza companies have embraced technology to make it easy for consumers to start with them. If people start with Pizza, many of them will end with pizza. As you look at your investments – what is the value added which keeps people coming back for unless it is monopoly there are alternatives.
There are more questions than answers, till the next time – to raising questions.