Domino's makes a bigger bet on chicken

The No. 2 pizza chain hopes some new items will help it take a bite out of Pizza Hut's market share.

By Kim Peterson Feb 21, 2011 2:01PM
Credit: (© Douglas C. Pizac/AP)
Caption: Domino's franchiseDomino's (DPZ) continues its ongoing menu overhaul this week, adding boneless chicken and revamped chicken wings in hopes of increasing the size of customer orders.

The company's focus is still pizza, of course. But now customers can get boneless chicken with any of these dipping sauces: hot, BBQ, ranch, blue cheese and sweet mango habanero. Chicken wings are also available in hot, sweet mango habanero and BBQ flavors.

The offerings come as Domino's cruises to a 52-week high. The stock zoomed as high as $17.61 last week but dropped to $17.14 Friday (markets are closed Monday). The stock has soared 31% in the past six months.

What makes Domino's so hot? Net income growth has been sluggish, writes TheStreet, but the company makes up for that with revenue growth, reasonable debt levels, good cash flow and a largely solid financial position.

Post continues after video:
Domino's improved its pizza recipe in late 2009. Chief executive Patrick Doyle says the company is "methodically working through our menu to make sure everything is the best food we can possibly make," The Detroit News reports.

Domino's says the new chicken changes are the result of two years of research. The company has offered chicken wings for years, but they were mostly an add-on menu item, with pizza still being the focus of an order, Doyle told the Detroit News.

The idea is to make the chicken items so prominent -- and so good -- that more people will order them. Domino's hopes to take market share away from Pizza Hut, the nation's largest pizza chain. Pizza Hut is owned by Yum Brands (YUM).

"Like any restaurant business, you can't rest on your laurels," a restaurant analyst told The Detroit News. "It's a 'what have you done for me lately' category in consumers' eyes."

22Comments
Feb 22, 2011 9:34AM
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Has the phrase "you get your moneys worth" mean nothing to people anymore? I swear Ill hear people complaining about o Taco Bell doesnt use real meat. Mcdonalds makes me sick. My Wendys didnt taste right. My 5.99 pizza wasnt up to par.

 

Your burrito was 99 cents. Your big mac was about 3 to 4 bucks for the sandwich (thats like a 1 for each patty, plus the buns and sauce and other toppings) and that pizza was 5.99. 2 toppings? yeah that comes out to be about a dollar a topping and an extra dollar for all the cheese another for all the sauce and a dollar for all your crust. YOU GET YOUR MONEYS WORTH. Are we not seeing a pattern here? Your not getting consistent service at a place thats cheaper than 2 or 3 gallons of gas for an entire meal? And your complaining? why dont you make it yourself with your own "High Quality" ingredients? O right. Cuz you pressed delivery, and then complain when being lazy got you no where but to bad food. Your full of it. Either your all made of money, or your all just illy misinformed of the actual worth of your dollar and how it doesnt change just cuz u went down the street to the next fast food joint

Feb 22, 2011 9:38AM
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I'm in the restaurant business and all I hear from the comments below is a bunch of bitchy customers.  Customers are never freaking happy.  If you order Dominoes you shouldn't be expecting freaking Gusanos or a New York style Pizzeria.  It's freaking fast food basically.

Don't be so whiny.

Feb 21, 2011 6:39PM
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My dad Delivered all last night until 2 am in a blizzard so that people could get their pizzas that's real nice that dominos cares enough to stay open that late at night. That's Caring Red heart
Feb 21, 2011 7:36PM
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When I lived in Norfolk, VA back in the early 1980's Domino's Pizza was about the best I could find.
When I lived in LaGrange, GA, 2 years ago again about the best I could find. 
But if there is one advantage to living in the snow drifts of western NY its all the mom & pop pizzerias that make any of the national chains taste like your eating crap. 
Feb 21, 2011 6:28PM
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After Pizza Hut switched their sauce to "this side of crappy", Domino's is the BEST delivered pizza in town!!  Not to mention that they try to "care" how your pizza is delivered and tastes!  Good for them!  I hope they do well.  I'll keep buying from them!
Feb 21, 2011 11:41PM
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dominos is cool, especially now w/large 2 topping carry-out for $5.99
Feb 21, 2011 6:46PM
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To Grffff:

(Dad must've been delivering to all the NASCAR fans during the 5 hour race at Daytona!)  Quality is quality!  I like how Domino's has the "pizza tracker" down to the virtual moment it's delivered to your door.  Ummm, yeah, good luck with that, Pizza Hut.  KMA.

Feb 21, 2011 6:32PM
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Dominos Pizza ROX Tongue out Thumbs up Hot Pizza Party Open-mouthed Smile
Dominos is not Sick
I  Red heart Dominos
Don't Give Dominos a Thumbs down
DOMINOS IS THE BEST THATS NO DOUGHT  Pizza
Feb 22, 2011 9:49AM
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i like domino's very much, can't wait to try their new dish. 
Feb 22, 2011 9:07AM
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As the "pizza wars" heat up everybody is trying something different. The thing is the pizza business is highly profitable. Not so long ago I knew someone who was a manager at a Domino's...their cost for a large cheese pizza ...overhead....ingredients....soup to nuts...$2.11. Not a bad margin as they were selling this pizza for over $12 at the time. I don't think there are such margins in chicken wings. These folks might want to "stick to their knitting" and concentrate on a better product, more efficient use of manpower and stellar customer service. Just my 2 cents....
Feb 22, 2011 11:12AM
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Where's the Noid?? Avoid the Noid with Domino's!

Feb 22, 2011 9:14AM
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tried to order the new $5.99 two topping special last night on dominos.com. finally gave up after multiple tries. kept getting some ridiculous error message about not being able to process the order. went on Papa John's and was enjoying a delicious pizza 20 minutes later. no problem processing my order with the same credit card i was attempting to use with dominos.
Feb 22, 2011 12:38PM
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Well im sadly disappointed that all your guys' Dominoes seem to suck, cause I live in Springfield, Missouri and the Dominoes here is to die for, don't get me wrong not the greatest pizza in the world but still yummy as can be. For all you doubters out there about them using real ingredients I know the manager that works at the one by my place and watched multiple times as he would open up and "make" their tomato sauce and grate the cheese off the block slice the pepperoni about the only thing I can say is not up to par is the ground meat they use taste terrible before it goes on that pizza. Either way I usually order 2-3 times a week from co-workers wanting pizza or just me wanting pizza and I have had nothing but excellent service, early pizza, steaming hot pizza, courteous pizza drivers. I really can't say nothing bad about them. So really if you got a problem with your Dominoes maybe it's just the one in "your" city. Maybe you need to let them know they freaking suck like the 2011 yankees.
Feb 21, 2011 6:44PM
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IIIIIIIIIIIIIIIIIIIIIII Red heartRed heartRed heartRed heartRed heartRed heartRed heartRed heartRed heartRed heartRed heartRed heartRed heartRed heartRed heart DDDDDDDDDDDDDDOOOOOOOOOOMMMMIIIIIIIIIIIIINNNNNNNNNNNNOOOOOOOOSSSSSSSS

DON'T PUT YOUR Thumbs down
Feb 22, 2011 9:26AM
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I just ordered Dominos last night because I saw the $5.99 special.  While ordering I saw that they had new wings so I went ahead and added an order.  I ordered online and the online ordering system was a little difficult but the fact you could see the process of the order was neat, but when I tasted my order realized they had put money into technology and not taste.  I have eaten there in the past before it was "better" and remember better tasting pizza with more toppings.  The new wings are the worst wings I have ever eating, including premade wings sitting under a lamp at the grocery store.  If they want to cut into Pizza Hut's Wing Street they better think again.  My husband and I both agreed that we won't be trying Dominos again because our bad order wasn't due to it being made wrong it was due to low quality ingredients.
Feb 22, 2011 10:10AM
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I still want to know why Domino's chairman blows up when he hears the name Kevin Trudeau. Kevin only asked for a simple debate about the ingredients and just how healthy they are. Something to hide... maybe?

Do a search for Kevin Trudeau Domino's and be your own judge

Feb 21, 2011 8:13PM
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Dominoes is "stressing" chicken!   Give me a break!  I live in Brunswick, Georgia; was in the restaurant business for 22 years, and have never experienced  such a crappy wing; they are soggy, and most times the order was messed up; even upon the order being "re-delivered"!

Dominoes; you have a long way to go; or is it just the Brunswick franchises?

Feb 22, 2011 9:57AM
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I cant beleive people still eat this garbage pizza.  The only way I would consider eating this food is if i lived in middle of no where USA where the choices for pizza are limited.  You can not compair Dominos pizza to anything in the NYC area.  Its a shame really.
Feb 22, 2011 2:09AM
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What Domino's should make a big bet on is fixing the pizza they screwed up worse when they tried to fix it last time.
Feb 22, 2011 7:38AM
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last time I ordered from Dominos it took 3 hours to get a pizza. First they "misplaced" the order, and then after a call an hour later, they sent someone with the order and they "got lost"  (I live in an apt complex and gave explicit directions, and they couldnt find the complex)  then the third time, they finally showed up at the door with "sorry for the mixup but the pizza's free" and then stood there and had the nerve to say "you can still tip"   Needless to say the pizza was a cold nasty oil slick.  I make my own now.  Too bad too cause the only pizza delivery in my area is Dominos and Papa John's which is vile pizza. Maybe instead of spending its money on new ads, Dominos should concentrate on paying good employees a good wage, and then getting rid of the ones that are total morons.

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