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Fast Food News Restaurants

Domino’s Stock Has Grown Faster Than Amazon, Apple and Google Since 2010

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If you invested in Domino’s Pizza stock in 2010, you might find yourself sitting on a pretty nice fortune right about now.

According to Quartz, the pizza chain’s stock value has risen by over 2000% since the start of the new decade, out-competing heavyweights like Apple, Google, Facebook, and even Amazon in terms of stock growth since that time period.

The rapid stock price growth makes Domino’s the fourth fastest growing company with a market cap of at least one billion dollars on the New York Stock Exchange. The three companies better than Domino’s are in medicine and furniture, making Domino’s the best food stock that you could have invested in since 2010.

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What are the reasons that the pizza giant has been doing so well? The company has been in a massive turnaround phase since 2009 and completely revamped their ingredient supplies, which has helped to restore trust in a pizza that most people felt tasted terrible beforehand.

Domino’s also leverages a massive technological advantage when it comes to mobile and online ordering, which is where over half of its sales come from.

Quartz also speculated that the rise and success of Netflix could be responsible for Domino’s success, which does make sense. If you’re in watching Netflix for the night and need food, you’re probably gonna do delivery. Chances are that if it’s a pizza, it could be Domino’s.

As the popularity of streaming entertainment and mobile ordering solidifies as industry standards, so should the success of Domino’s Pizza. So if you have that fortune of Domino’s stock you’ve been sitting on since 2010, I’d sit on it a little longer. And if you do invest or are looking to invest for the first time, maybe consider purchasing Domino’s stock.

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Fast Food News Restaurants

10% Of Chipotle Bought By Activist Investors, Here’s What We Know

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Chipotle has seen its ups and downs this past year. With all the outbreaks, losses, and disavowment from fans, the fast-casual Mexican Grille needs to make a major comeback.

According to NRN, the Securities and Exchange Commissions filings on Tuesday revealed that investor group Pershing Square Management LP took a 9.9 percent stake in Chipotle. CEO William Ackman called the stock undervalued and an attractive investment with strong growth opportunity for Pershing.

As an activist investor, Pershing is pretty well known for making crucial changes. Here are some of the things we know about Ackman and Pershing’s move into Chipotle so far:

– The chain could start serving breakfast, CNBC reports. In a credit note to clients, Credit Suisse, a leading financial services holding company, says a breakfast menu could help the chain improve digital engagement. Other possible changes include new beverages and drive-thru options.

– Credit Suisse also says with Pershing holding a seat on the board, they could move Chipotle away from the attempts to win customers back through discounts and giveaways and focus on rebuilding the brand instead.

– Fortune did the math and estimated that Ackman has already made about $80 million since buying Chipotle stock about a month ago, though a spokesperson for Pershing declined to comment on those numbers.

Whatever changes Pershing looks to make in the flailing company, we’ll see the investor group’s plans for Chipotle soon enough. Until then, we’ll quietly enjoy the occasional free burrito and embrace the Sandman’s kiss while on the clock.

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Fast Food

Lawsuit Claims Chipotle Execs Manipulated Stocks To Make Millions

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Following the E. Coli scare Chipotle faced supoenas, lawsuits, empty stores and drops in sales. Now the company is at the center of yet another lawsuit.

Chipotle shareholders have filed a lawsuit accusing executives and board of directors of using insider knowledge for financial gain. The suit claims the executives, including Co-CEOs Steve Ells and Montgomery Moran, and CFO Jack Hartung, “dealt themselves excessive compensation worth hundreds of millions of dollars through a corrupt stock incentive plan.”

The lawsuit argues that the executives “materially misstated information to keep the stock price inflated.” It says during that time Ells sold 119,057 shares and made $78 million by taking advantage of the “artificially inflated” stock prices. Moran is accused of making over $107 million and Hartung $28 million.

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The lawsuit also claims that top directors directed the company to repurchase stock at inflated prices of more than $84 million more than it was worth. The shareholders filed a shareholder derivative suit which means they are taking action against the executives for Chipotle itself. The suit also includes the accusation that the executives had a duty to inform customers and shareholders of the subpar food safety standards so the price of common stock would be truthful.

Current shareholders are still taking a hit following the E. Coli scare. Chipotle stock plummeted to the lowest level in three years last week.

Shareholders previously filed a separate lawsuit in January following the E. Coli scare accusing executives of concealing the facts that protocols on quality were not adequate. They argued that withholding this information meant shareholders didn’t know to drop their stock before it plummeted.

This suit is still pending.

H/T: CPR

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Hit-Or-Miss

Chicken Joint ‘BOJANGLES’ Just Went Public, Here’s Why You Should Care

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Bojangles stock is blowing up. In its first day on the market, the fried chicken chain has been met with great success, Business Insider reports.

The North Carolina-based food chain is known for its Southern-style food. This includes 12-hour marinated fried chicken, biscuits made from scratch and all-day breakfast offerings.

Originally pricing its IPO at $19 a share (an optimistic price), the company sold 7.75 million shares. Eventually, prices rose to $23.40 a share and at one point $27.

B0jangles has 622 restaurant locations in 10 different states in the East Coast. Since 2012, sales have grown from $349 million to $430 million. Now that the company has gone public, its plans of expansion to the West Coast is more than likely.

We’ll probably see more competition between them and Popeyes in the near future. Especially since Bojangles caters too an all-day breakfast menu. That’s usually a HUGE sell.