The pandemic pizza party is over for one of the most popular companies in the business and a new direction is coming.
With shares down in 2022, Jim Cramer spoke to Richard Allison, outgoing CEO of Domino's Pizza (DPZ), which reported weaker-than-expected revenues this quarter as it struggled with inflation. Shares surged through the pandemic in 2020 and 2021, reaching a peak at the end of December.
When asked on "Mad Money" about his departure, Allison said the time was right for him and his wife to pursue other priorities. He became CEO in July 2018. He said Domino's is in a great place and he has every confidence in the team and incoming CEO Russell Weiner. Allison’s retirement becomes effective May 1.
On Real Money, Bruce Kamich noted recent action in Domino's chart doesn't make it compelling, at least not yet."A chart can change from day to day," Kamich noted. "Two lower shadows on the candle chart are interesting but I am still not ready to place an order for pickup."
Weiner has been with Domino's since 2008 and knows all aspects of the business, Allison told Cramer. He currently serves as COO and knows the product, knows advertising and is a great leader that the team enjoys working with. Allison said Domino's is seeing inflation in many areas and is working hard to mitigate price increases.
Finally, Allison commented on the crisis in Ukraine. He said he's been talking to team members every day and was humbled to hear that some stores opened for a day to feed people in need. "Pizza brings people together," he said.
