In his first "Executive Decision" segment of Tuesday's Mad Money program, Jim Cramer spoke with Rich Allison, outgoing CEO of Domino's Pizza (DPZ) , which reported weaker-than-expected revenues this quarter as it struggled with inflation.
When asked about his departure, Allison said the time was right for him and his wife to pursue other priorities. He said Domino's is in a great place and he has every confidence in the team and incoming CEO Russell Weiner.
Weiner has been with Domino's since 2008 and knows the business inside and out, Allison said. He currently serves as COO and knows the product, knows advertising and is a great leader that the team enjoys working with.
Turning to inflation, Allison said Domino's is seeing inflation in many places, and its' working hard to mitigate them wherever possible.
Finally, Allison commented on the crisis in Ukraine. He said he's been talking to team members every day and was humbled to hear that some stores opened today to feed people in need. "Pizza brings people together," he said.
Shares of the company were downgraded Wednesday from buy to hold by a sell side-firm. We looked at the charts of DPZ on Monday, writing: "I have no special knowledge of what the leadership of Domino's will tell shareholders on Tuesday. A hammer formation is a plus but by itself it is not enough to recommend purchase of the shares just yet. Standing aside."
Let's check the temperature of the pizza ovens again.
In this updated daily bar chart of DPZ, below, we can see some big range days and some outside days in recent sessions. Futures traders are sometimes sensitive to outside days and they can sometimes be "near reversals". Trading volume has increased in recent sessions telling us there is more interest in this name.
The daily On-Balance-Volume (OBV) line is steady and the Moving Average Convergence Divergence (MACD) oscillator is edging upwards.
In this weekly Japanese candlestick chart of DPZ, below, we can see two lower shadows telling us that traders are rejecting the lows. The week is not over yet so the candle can change.
In this daily Point and Figure chart of DPZ, below, we can see a downside price target of $335. A trade at $445.45 could turn the chart more positive.
Bottom line strategy: I always find it interesting how a chart can change from day to day. Two lower shadows on the candle chart (above) are interesting but I am still not ready to place an order for pickup.