Today we are watching…
1. Domino’s Pizza (#dominos)
Pizza lovers are changing their minds about almost everything, and Domino’s can’t keep up! Consumers are ordering more crusts, more carryout’s, and faster deliveries from the chain. As it missed earnings yesterday, investors saw these changes as threats. However, as CEO Ritch Allison spoke inspirationally on a call to analysts, the market changed its tune. These could be opportunities! If eaters prefer takeaways, then great, no need to pay a delivery driver. If eaters want crusts, then great, add them to a meal deal. Domino’s is notoriously good when the chips are down. The chain crushed it during the last recession! Papa Johns? Papa who? Pizza Hut? Pizza wut?
2. Target (#target)
Toys-R-Us (TRU), why won’t you die already? In the run-up to Christmas, Target wants to resurrect the bust toy store and bolster its own toy business. The deal to bring back TRU is pretty one-sided, as you’d imagine! The Toys-R-Us website will return, and whenever a parent goes to the checkout to complete a purchase, they’ll be re-directed to Target’s website for that final click. We don’t know whether TRU, now a shadow of its former self, will be able to sustain this lifeline. It’s leaving the complicated stuff to Target, like supply chains, and will only have a handful of decorative stores in one or two malls. For investors in target, however, talk about getting the last puff out of a discarded cigarette butt! Their playing to win!
