Like many restaurant chains, Domino’s Pizza is a publicly traded company. You can buy their stock, listen to their earnings calls, and even attend shareholder meetings (which may or may not feature a catered Domino’s lunch).
Thanks to a new promotion, however, there’s another way you can invest in Domino’s: by eating food from Domino’s. It might sound absurd, but Domino’s is actually giving away shares of their stock to select participants of a new rewards program. They’re also giving other lucky people part of their stores profits.
Yet are these shares worth anything? Better yet, are they worth the time and personal investment you must make to get them? Here’s what we found when we researched the ins and outs of this strange stock giveaway.
Domino’s recently introduced their Piece of the Pie rewards program, which gives away free food and other prizes.
By entering the rewards program and purchasing $10 more or food, you’re eligible for earning points. Earning enough points will eventually net you free food. Many restaurant chains have rewards programs (which you should totally take advantage of to save money), so what Domino’s is doing here is nothing new.
Select participants in the program will also receive 10 shares of Domino’s stock or $10,000 in store profits.
Each month, 25 random rewards program members will receive 10 shares of $DPZ. Given that the current price of Domino’s stock is $162.34 a share, the value of this giveaway would equal $1623.40 per person. To be eligible for this giveaway, you have to order Domino’s pizza and spend at least $10 each time.
Fifty rewards members who interact with Domino’s on social media and create Domino’s-related content are also eligible for winning $10,000 each (for a total $500,000 giveaway). According to the pizza chain, this money is essentially “profit-sharing” with their customers, because where else would the company find $500,000?
Should you constantly eat Domino’s Pizza with the goal of earning stock or cash? Absolutely not.
Regardless of how you feel about their food, spending money for the chance of winning a prize is not a sound investment. The full value of the stock giveaway is equivalent to ordering from Domino’s 162 times, and ordering does not guarantee that you’ll receive the stock. Nor does it make sense to invest time and money into being part of the “profit sharing” giveaway.
If you want Domino’s stock, you’re better off buying it yourself. You could also might want to look at other ways to invest in pizza if you really want pizza-related securities to be part of your portfolio.
Should you invest in Domino’s at all? The chain grew by 46% over the last year, and their locations are performing well. Yet investor sentiment is currently at a record low, while investment firms are split on the future of the company.
If you really want Domino’s stock and don’t want to eat their pizza for the slight chance of winning it, be sure to look at the company’s financial filings and history before you decide to invest in them. If you’re undecided, wait to see how their current promotion impacts sales before going any further.