Basic necessities like food, water, shelter and clothing are some useful materials for every human being to perform daily functions. As a producer of necessities, the chances of revenue being boosted up are relatively high due to the fact that basic necessities are very inelastic.

Likewise, Domino Pizzas in United Kingdom is doing extremely well proven by their strong growth rates. Not only their deals from walk-in customers are rising, sales completed over the Internet and mobile devices are doubling too.

Despite the good news for Domino’s, the price of the stock seems to be affected by the recent growth rate. The contemporary share price is €593.00 and it is actually considered as a relatively expensive share price. To keep the stock price low, the company announced that they intend to decrease UK store openings from 60 to 50.

Personally, this is a wise decision to be made since having the stock price to escalate following the company’s development is not very ideal. This is because to maintain such elevated rating of the stock price, it must be followed by a rapid growth of sales and profit, which might turn out to be a threat to the company.

References:

Ficenec, John. “Domino’s Pizza Now a Hold.” (2013): n.pag. Web. 7 Oct 2013. <http://www.telegraph.co.uk/>.

“Domino’s Pizza Share Price (DOM).” (2013): n.pag. Web. 7 Oct 2013. <http://www.lse.co.uk/>.