Jim Cramer’s Must-Watch List: 10 Stocks to Look After

4. Domino’s Pizza Inc. (NYSE:DPZ)

Number of Hedge Fund Investors: 52

Jim Cramer addressed the recent lawsuit against Domino’s Pizza, Inc. (NYSE:DPZ) , stating that it is not a significant concern. He noted that such lawsuits often arise whenever a stock declines, and he expressed frustration with this trend. Cramer criticized these legal actions, suggesting they primarily benefit the lawyers involved rather than the people they claim to help. He indicated that he is considering taking a strong stance against these lawsuits due to their negative impact.

“Okay, first, I’m going to ease your mind here: the lawsuit against Domino’s is meaningless. They just file these lawsuits every time a stock goes down, and I wish they would stop that. If they keep doing it, I have to tell you, I’m thinking about major takeout on this nonsense because they hurt everybody, even the people they claim to represent, frankly. They charge so much, and not a lot of money is going to come to anybody other than them.

Domino’s itself did screw up; they didn’t know they had a weak franchise that was missing its numbers from overseas, and that caused people to think, “Wait a second, maybe they’re not as in control of their destiny as we thought.” That’s why the stock is going down, and that is an actual worry for me too.”

Domino’s Pizza, Inc. (NYSE:DPZ) is an attractive investment due to its strong financial performance, operational improvements, and ambitious growth plans. In Q2 2024, Domino’s Pizza, Inc. (NYSE:DPZ) reported an EPS of $4.03, up 30.8% from the previous year, and revenue of $1.1 billion, marking a 7.1% increase despite industry-wide cost pressures. Domino’s Pizza, Inc. (NYSE:DPZ)’s improved supply chain management and higher U.S. franchise royalties contributed to a 29.8% rise in net income.

Domino’s Pizza, Inc. (NYSE:DPZ) plans to open 825 to 925 new stores globally in 2024, demonstrating confidence in its long-term growth. Additionally, its quarterly dividend of $1.51 per share and share buybacks underscore its commitment to shareholder value. Overall, Domino’s Pizza, Inc. (NYSE:DPZ)’s strong financials, operational efficiency, and growth strategies make it a promising investment in the consumer discretionary sector.