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Cramer fave generates 715% in 5 years

(Click for video linked to a searchable transcript of this Mad Money segment)

Stock picking is all about identifying future gains. And had you followed Jim Cramer into this stock 4 and ½ years ago, you'd be looking at serious upside.

Time and again, Cramer has advocated buying Domino's into weakness. And looking back, "It proved to be the right call. This stock has now generated a magnificent 715 percent return since I started recommending it 4 and ½ years ago," Cramer said.

Domino's Pizza
Daniel Acker | Bloomberg | Getty Images
Domino's Pizza

But if you haven't been on board, Cramer thinks there's still time to grab a slice of this pizza maker. "Even though it's up, I see it going higher," Cramer said.

Largely, the "Mad Money" host views Domino's as a bet on the vision of its CEO Patrick Doyle. Among the many innovations introduced by Doyle, Cramer is perhaps most impressed by the mobile ordering platform. "I think it's the best of its kind; it even lets you order a pizza via Facebook."

"There's been a real shift in the way consumers buy and we've moved with them," Doyle said on "Mad Money." "The food, the service the technology; it's all comes together at Domino's."

Also Cramer cited Doyle's ability to mitigate input costs as well as its franchise business model as two other reasons to like the stock.

Recent earnings seem to confirm Cramer's bullish outlook. The second-largest U.S. pizza chain by store count reported second-quarter net income of $38.5 million, or 67 cents per share, up from $33.3 million, or 57 cents per share, a year earlier.

Analysts, on average, expected Domino's to earn 66 cents per share in the latest quarter, according to Thomson Reuters I/B/E/S.

Revenue rose almost 9 percent to $450.5 million after sales at stores open at least one year gained 5.4 percent domestically and 7.7 percent internationally.

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"Betting on high quality companies with top-notch management almost always pays off," Cramer reiterated, and if Domino's is anything, it's top-notch.




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