Domino's Pizza Goes Bold With Its New Chicken Menu Offering
NEW YORK (TheStreet) -- Domino's Pizza (DPZ - Get Report) has been a darling on Wall Street. Shares rose 53% in 2013, as the takeout pizza chain continued to increase its market share and same-store sales. The company also offers investors a way to play emerging markets via its more than 5,000 stores abroad. Domino's latest growth for investors comes from its expansion into chicken.
Now Domino's has announced new specialty chicken on its menu. The boneless chicken offering is a combination of wings and pizza. It's the first large new product offering for the company since September 2012.
Domino's will offer four flavors of sauce for its chicken: crispy bacon and tomato, spicy jalapeno pineapple, classic hot buffalo and sweet barbecue bacon. The new meals come with 12 boneless pieces of chicken covered in layers of cheese and sauces.
The specialty chicken will enhance Domino's popular $5.99 mix-and-match meal, which includes pastas, sandwiches and medium two-topping pizzas. A national television campaign will center around "failure is an option," as Domino's shows off how it developed the new product, including its mistakes along the way.(YUM), also sells flavored chicken wings via its Wing Street brand.) Domino's is hoping to upsell the chicken and attract customers with its unusual flavors and its wing pizza. As it announced in January, Domino's will see all of its stores remodeled into "Pizza Theaters." The remodels, which will cost between $40,000 and $55,000 for each store, will be paid by franchisees. Domino's has not done a lot of remodels, and this one is expensive.