Domino’s Share Price
While industries across the board suffered through the pandemic, the Domino’s share price (LON:DOM) rose steadily. In May this year Domino’s was flirting with an all-time-high, before retreating to its current level of 368p. Year-to-date the Domino’s share price is up by 16.5%. Now the pizza delivery company faces a new challenge of maintaining its recent momentum as people are allowed outside, and other options become more readily available. So far, it remains committed to its strategy of opening new locations across the country.
New Stores
Domino’s is looking to hire 5,000 new employees in an effort to boost its sites as demand is picking up across the UK. This follows the fast-food chain recruiting thousand of workers last year in order to keep pace with demand.
Part of the reason for the hiring spree is that people, for example hairdressers and taxi drivers, are moving back to their old roles. However, in addition to needing more staff for its 1,100 UK branches, Domino’s is continuing with its plans to open up more stores.
Earlier this year the company unveiled plans to add 200 new outlets to its 1,201 stores. This is in part to revive its collections and drive-thru business as it continues to battle against its competitors.
Russ Mould, the investment director at the stockbroker AJ Bell, said: “Domino’s needs to address the threat of growing competition from non-pizza operators. The rise of food ordering apps from Just Eat and Deliveroo mean it is just as easy to order a McDonald’s as it is to shop with Domino’s.”
The company has been aiming to grow its site locations by dividing up areas covered by its franchisees. This strategy has slowed significantly during the pandemic, which could be a worry. It has also annoyed current franchise operators who are now seeking a better deal. With 278 stores added in the last five years, Domino’s remains ahead of its target.
As of April 2021, only three stores have been added, although Domino’s remains focused on its target of 25 to 30 new openings this year.
