Amid a flash of cameras, Mitt Romney signed the check to buy Domino’s Pizza with a flourish. It was a huge deal for Romney’s Bain Capital back in 1998, worth $1.1 billion. Under Bain, Domino’s grew its revenues and earnings, but it also grew its debt to $1.5 billion, leaving the nation’s largest pizza chain with a higher debt ratio than most of its rivals, and interest payments that eat up half its profit each year.
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Comments
Rick Perry had this one right--- vulture capitalism.
The article says: "Domino's was not in need of rescue, nor was it a classic turnaround case for Bain..." yet the chart indicates that in 1998, the year of Bain's purchase, Domino's had income of ZERO against interest expenses of about $60 million. How can you present the Domino's situation in 1998 other than as one of impending and utter disaster? Isn't ZERO income a bit of a problem? Moving from a negative position of $60 million in 1998 to a positive position of $137 million in 2010, an improvement of $197 million a year, is pretty Herculean in my opinion, yet this article implies Bain abused this business. We know it wasn't written by a 5th grader, or has the writer a personal agenda?
Bad Mitt! he stole all that money. He crippled a great company that didn't need any help. And he makes bad pizza!
Let me guess they borrowed the money against Doughminos value, pocketed it personally as bonuses and saddled the company with massive debt. Fantastic!!!! Now can I get a job just like Mitts???
ST: Yes Vulture Capitalism Pure and Simple as Long as Bain type companies exist we will have these vultures. Personal Money and Fortunes not society or the USA citizen is important. LifeLibertyPOH, Can't tell from that Graph that Bain did anything. We do not have enough numbers nor the years before graphic. Half of your income in 2010 going to pay Long Term Debt is BAD/Horrible over a 12 year run. Yes I do agree that the Globe quite often forgets to show the entire picture. We don't buy Dominos pizza because it tastes bad and did so for years. NOW A REAL management team and Venture Capital firm (like some we have in the Boston area), that wants to grow a business, always would make sure their product (pizza) was superbe not middle of class with mom and pops making better pizza. Wonder if Mitt was one of the 130,000$ a year board members. Spending maybe 8-10 days a year for 130K = 13x250= 3.25Million annual equivalent to a pizza flipper After a positive lying story on Mitt and Health Care, again facts left out and agenda driven, I thought the Globe would not print this type of story.