Académique Documents
Professionnel Documents
Culture Documents
Overview News Pro les Investments Performance Follower Returns Filings Stats Intermediaries Alerts Investors
News
Lemelson: Domino's has the worst corporate governance QUICK SEARCH
23rd January 2018
Search
saying in a statement to Activist Insight that CEO Patrick Doyle "is exiting
before the chickens come home to roost."
"You can't keep borrowing to increase a shareholder de cit - Doyle and the
board of directors of Domino's represent just about the worst there is in
corporate governance," Lemelson told Activist Insight. In the past ve years,
the company's revenue has increased by 32% to $2.47 billion, while its long-
term debt shot up by 29% to $2.15 billion. Such a business model is
unsustainable, according to Lemelson.
The U.S. tax cuts should provide some respite for the company, although
rising interests will have a negative impact on the bottom line. Lemelson
believes that the U.S. tax reform will bene t Domino's "better-capitalized
competitors" more.
An incessantly rising stock price did not scare Lemelson away. In fact, he
says the bull market has provided the fund with an opportunity to short the
stock at "ever higher, irrational, prices." The activist thinks the stock has at
least 64% downside and is worth just $78, "and only then to the brashest of
speculators."
The investor said the stock will inevitably collapse given the product's poor
quality and management's failure to shift into gourmet and healthy choices.
https://www.activistinsight.com/members/ViewNews.aspx?neid=23038&mode=3 1/2
1/23/2018 Activist Insight
Related Links
More news on Lemelson Capital Management Pro le for Lemelson Capital Management
More news on Domino's Pizza Inc Pro le for Domino's Pizza Inc
Timeline
Date Summary
25-Jul-17 Shares in Domino's Pizza decline 8.3% after reporting disappointing international sales
18-Apr-17 Reverend Emmanuel Lemelson claims that the company could get into trouble as interest rates rise
The Australian franchisee of Domino's Pizza announces it will release con dential gures on its stores' pro tability after a newspaper investigation
13-Feb-17
accused it of questionable business practices
Lemelson Capital, according to a Benzinga article, states that Domino’s Pizza relies on franchises to raise debt to feed payments to corporate as well as
18-Jan-17
low cost energy, labor, loans and cheddar and states that any changes in these factors will have a material impact on growth
Lemelson Capital discloses that as of 9-9-2016, management had sold short a total of 35,570 shares (valued at $5,007,590) at an average price per shar
09-Sep-16
of $140.78
Lemelson Capital discloses that between 2-25-2016 and 7-11-2016 its management shorted 14,370 shares of Domino’s shares at an average price of
13-Jul-16
$132.42 and a total value of $1,902,926
24-May-16 The state's attorney general sues Domino's Pizza Inc, a liates and three franchisees alleging they underpaid workers
18-May-16 GeoInvesting publishes a short report against Domino's Pizza, with the company facing wage increases and volatility in commodities
Shareholders of Domino's vote to approve the proposal regarding executive compensation at the company's AGM despite CtW Investment's
21-Apr-15
recommendations. Shareholders also vote to reject a proposal from Marco Consulting regarding proxy access
CtW Investment Group writes to shareholders of Domino's Pizza and request they vote against a proposal to approve executive compensation at the
23-Mar-15
company's AGM
Domino's includes, in its de nitive proxy statement, a shareholder proposal from Marco Consulting Group who requests the board take the necessary
12-Mar-15
steps to adopt a proxy access bylaw
By using this site, you agree we can set and use cookies. For more details see our cookie policy .
https://www.activistinsight.com/members/ViewNews.aspx?neid=23038&mode=3 2/2