I don't know about you, but I really like the new Domino's
I don't think I'm alone in liking the commercials. In the recently announced third-quarter earnings report, the company highlighted a whopping 11.7% domestic same-store sales increase, attributed mainly to the continued success of its new pizza recipe and the effectiveness of its advertising.
The quarter isn't just a one-off either. Same-store sales have been incredible this year, with 8.8% growth in the second quarter and 14.3% in the first quarter. Much of the growth is due to the December 2009 release of the new pizza recipe, which in a blind taste test won out against competitors Papa John's
The company has taken the success and been aggressively marketing it, not just with the CEO-toting ads, but also with innovative campaigns like the Taste Bud Bounty Hunter program, which gave a year of free pizza to the person who convinced the most people to try the new recipe. In the past couple years, Domino's has also introduced easier ways to place an order for pickup or delivery, such as online ordering or even TiVo
New recipes are always a risk. New Coke was such a tremendous failure that when Coca-Cola
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Fool contributor Jacob Roche actually had to take a pizza break halfway through this article, it made him so hungry. He holds no position in any of the companies mentioned. Coca-Cola is a Motley Fool Inside Value recommendation. Coca-Cola is a Motley Fool Income Investor selection. The Fool has created a covered strangle position on Papa John's International. The Fool owns shares of Coca-Cola, Domino's Pizza, and Yum! Brands. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.