At a conference at the University of Michigan on Friday, David Brandon, CEO of Domino’s Pizza, Inc., said that entrepreneurs frequently under-value the growth potential of their own companies. Brandon used Domino’s as an example. Tom Monaghan sold the company to Bain Capital for $1 Billion in 1999. When the company went public in July this year, it received a lukewarm welcome on Wall Street, selling shares below the company’s estimates. Brandon’s job, as he views it, is to create value and growth potential for the company. Based on the rising stock price (up to $15 per share) and analysts’ new favorable review of the stock, Brandon appears to be fulfilling his job requirements. This article suggests that Bain’s next step is to issue another round of stock.
Posted by franchiselawblog at September 27, 2004 05:00 PM