![]() More specifically, an abnormally high share price can prevent retail investors from diversifying their portfolios.īy allocating a greater percentage of their capital towards shares in one company, an individual investor takes on more risk, which is why the average everyday investor is unlikely to purchase even one high-priced share.įor instance, the share price of Alphabet (NASDAQ: GOOGL) as of the latest closing date () was roughly $2,695 per share. Stock splits cause a company’s share price to become more affordable to retail investors, thereby broadening the investor base that could own equity. the shares are no longer accessible to individual investors. Stock splits are most often declared by companies with share prices determined as being too high, i.e. The rationale behind stock splits is that individual shares are currently priced so high that potential shareholders are deterred from investing. LFL refers to the year-over-year growth in sales for non-split restaurants opened before previous financial year.A Stock Split occurs when a publicly-traded company’s board of directors decides to separate each outstanding share into multiple shares. ![]() ![]() Meanwhile, on Wednesday, the management’s decisions to stop disclosure of same-store sales growth (SSSG) going forward while only listing like-for-like (LFL) growth sales growth surprised analysts. Small stores in existing markets help to cater to quick delivery, said Abneesh Roy, executive vice-president, institutional equities, Edelweiss Securities. You will see us fortressing markets, but you’ll also see us enter new towns and grow the network in that manner as well," Pota said.ĭriving faster deliveries is a very “deliberate" and “important" part of the pizza chain’s strategy, despite a short-term impact on revenues of large mother stores, he added.Īnalysts said given the consumer demand for quick delivery, the move is a positive. So, you will see us maintaining this approach and this strategy as we go ahead. “One big driver, therefore, of our fortressing strategy and store-split strategy is linked to shrinking the delivery areas and get to customers faster. Last year, the company management had said it could open over 3,000 stores. Jubilant currently operates 1,500 Domino’s stores in India. Promoters of HT Media Ltd, the publisher of Mint, and the promoters of Jubilant are closely related, but there is no promoter cross-holding. It led to significant improvement in customer satisfaction scores," Pratik Pota, chief executive officer, and whole-time director, Jubilant Foodworks, said. As I mentioned earlier, more than 60% of our orders now get delivered in under 20 minutes. “We have made very good progress in the last two quarters. Domino’s first piloted the initiative in its home market in the US in 2012. As a part of the initiative, the company has put in place a “fortressing strategy", to aggressively expand its store network in existing markets to bring down delivery times further. To be sure, Domino’s had first announced its 20-minute delivery initiative during its second quarter earnings call in October.
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