Domino's Pizza VS. Pizza Hut - Assignment Example

Originally, the company was known as Dominick’s until it was purchased by Tom Monaghan who was the sole of owner of Domino’s. He saw some rapid growth in the company and after 38 years of success, Tom Monaghan sold over 90 percent share to Bain Capital Inc. The company stayed as a private limited company; however, after 6 more years, the shares were issued in the New York Stock Exchange under the symbol of DPZ. Since then, the company has been a hot attraction for investors. VLCEK, D. J., & DAVIDSON, J. P. (1992).

The domino effect: how to grow sales, profits, and market share through super vision. Homewood, Ill, Business One Irwin. Papa John’s Pizza is another famous pizza delivery corporation in the U.S and is one of the largest pizza chains in the world. It is headquartered in Louisville, Kentucky. Papa John’s has also been growing internationally with over 500 franchises in more than 30 countries. Thin crust pizza has been the company’s specialty since its start. The company is a public limited company with thirty percent of its shares with John Schnatter, the founder of the company.

Fast food companies have been a major attraction for investors during the years as they see greater potential returns. Restaurants such as McDonalds have received a lot of positive reviews in terms of performance and now the investors are looking to invest in other food companies like Papa John/’s and Domino’s. FRANCHISEHELP, INC. (1998). Papa John's: better ingredients, better pizza. Elmsford, N.Y., FranchiseHelp. To compare different companies, the potential investors need to look at the final accounts of the company which include a profit and loss account/ Income statement, the balance sheet, and the cash flow statement.

These are the 3 financial accounts that are enough for any investor if he/she needs to find compare 2 similar companies for a higher return. The financial statements measure the performance, the liquidity and the financial worth of the business which is essential for all future shareholders. However, the statements are not solely enough for the decision to invest. Ratio analysis has been widely used by several companies in order to make better decisions. These ratios can help an investor compare different companies for a higher return.

As these 2 top fast food chains are public limited companies, their financial statements are available on their specific websites. This information needs to be disclosed as the trading is done in the stock exchange and the public needs to buy there share therefore; the information needs to be available to the public. The accounts for both the companies are drawn below with the latest data from the end of the last financial year of the company. Financial accounts of both the pizza chains The income statement shows the performance of the business in terms of its basic operations.

The profit that is made shows how efficient has the business been in the financial year. Domino’s Pizza Inc. Income Statement For the Years Ended January 3, January 2, 2010 $000 2011 $000 REVENUES: Domestic Company-owned stores