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Trading Domino's Earnings

Tuesday, 26 Jul 2011 | 6:31 PM ET
Domino's CEO Talks Turnaround
Plenty of stocks are defying the gravitational pull of Washington, especially the stocks of companies that have reported fantastic results, says Mad Money host Jim Cramer. Patrick Doyle, Domino's Pizza president & CEO weighs in.

Domino's Pizza reported a spectacular quarter this morning, and the company’s CEO told Cramer the reason is a simple one.

“What’s driving our growth is the quality of the pizza, the quality of the experience that people are having,” CEO Patrick Doyle said.

The company delivered 40 cents of earnings per share, a 4-cent beat, on stronger than expected sales that rose 6.2% year-over-year.

Doyle said the key to profitability was customer retention, which is why Domino's relaunched its pizza domestically. And that’s also why he believes there are also ways to cut costs without damaging the reason for its success.

“You are always looking at how do you run your restaurant a little bit more efficiently, are there ways you can do that. The technology is a way to do that,” he said. “You don’t want to get anywhere near the food.”

Domino's is the best performing restaurants stock of 2011, up 71 percent year-to-date. Because of that, Cramer thinks home gamers can take something off the table. However, he thinks you should let the rest of your position run.

“This stock is way too cheap for this $1.7 billion market cap,” Cramer said.

Watch the video to see more of CEO Patrick Doyle’s interview.


Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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