Purpose of Study
As C. Stewart Sheppard, founding executive director of the Institute of Chartered Financial Analysts, said. “Society demands more from a profession and its members than it does from a professional craftsman in trade, arts, or business. In returns for status, prestige, and autonomy a profession extends a public warranty that has established and maintains conditions of entry, standards of fair practice, disciplinary procedures and continuing education for its particular constituency. Much is expected. Much is expected from members of a profession, but over time, more is given.” (2007) To research a company’s background in relation to its Financial Performance giving an Analysis and evaluation of the data available in the Organizations’ annual reports. A critical comparison within a similar industry was compared and conclusion and recommendations was suggested.
Dominos Pizza founded in 1960 by Mr. Thomas Monaghan, which originally headquartered in Ann Arbor, Michigan, United States was claimed to maintain the second largest pizza chain in the United States. Domino’s Pizza Mission Statement states “To be the leader in delivering off-premise pizza convenience to customers around the world.” [http://www.referencefor business.com/history2/60/Domino-s-Pizza-Inc.html]. Presently Domino’s manages approximately Nine Thousand Corporate and Franchise Stores in Sixty International markets. The company operates in three segments which includes Domestic stores in which Domino’s uses as a testing ground for new products and Technologies, Domestic Supply Chain, which comprises of seventeen centers that distribute food, equipment and supplies to all Domino’s in the United States, and International that incorporates roughly Three Thousand Five Hundred franchised stores. Domino’s Pizza main source of revenue compromise a menu which takes into account pizzas, bread sticks, salads, pasta and dessert items. Domino’s in 2009 innovated their pizza to meet the demand for their customers which resulted in historic gain. The company will celebrate its 50th Anniversary in December 2010 which illustrates the Going Concern Concept which states that “the business is continuing in operation for the foreseeable future.”(Association of Chartered Certified Accountants, Drafting Financial Statements (2006, p.81). Effective March 2010, J.Patrick Doyle became the President and Chief Executive Officer of Domino’s Pizza. Domino’s operates among eleven executives by a Board of Directors and the company has an estimate of One Hundred and Forty Five Thousand employees both locally and internationally. The company is also involved in a quantity of charitable activities including Make-a-Wish Foundation of America involving a two year partnership agreement and currently commencing a partnership with St.Jude Children’s hospital raising above One Million in 2006 .On the Historic attack at the World Trade Center on September eleventh Domino’s assisted in a major time of Political crisis provided over twelve thousand pizzas to relief workers. Domino’s becoming participative in beneficent activities allowed their Goodwill Value which is “the excess of the price paid for a business over the market value of its individual assets and liabilities.” (Association of Chartered Certified Accountants, Drafting Financial Statements (2006, p.105). Despite the economic environment increasing Inflation rates mainly towards the food and energy sector focusing particularly the cost of oil, wheat and cheese that have affected Sales growth, Domino’s Launched a new national marketing campaign “you got 30 minutes” which indicates delivery service in about thirty minutes, assisted towards increasing sales, while providing affordable cost and satisfactory quality. The company is highly focused on expanding international operations that have a profit history. Domino’s main competitors include Papa John’s International...
Bibliography: (Association of Chartered Certified Accountants, Drafting Financial Statements (2006, p.11).
Frank Wood & Alan Sangster (2007) Business accounting 10th edition FT prentice Hall; Financial Times
Thomas R Robinson (2009) International Financial Statement Analysis CFA / Hennie V Greuning, CFA Elaine Henry, CFA / Michael A.Broihahn, CFA p277).
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