Domino Pizza to Join S&P 500

The S&P 500 is a collection of the large 500 companies by market capitalization in the US. On Wednesday, the S&P 500 announced that it was including Domino’s Pizza (DPZ)on the list. These 500 companies in the S&P 500 are considered to be the overall best representation of the stock market, while the S&P 500 itself serves as a major benchmark in the United States stock market.

According to a news release, the Ann Arbor, Michigan-based pizza delivery chain was previously listed among the S&P MidCap 400 until it was removed and added to the S&P 500 index. This new inclusion has happened despite the raging threats of the coronavirus pandemic. Domino’s said last month that it was withdrawing its long-term growth outlook after temporarily closing 1,750 of its international stores due to the coronavirus pandemic. The company yet reported that it’s US same-store sales were up 7.1% in late March and much of April due to its home delivery business during the lockdown.

Domino’s will be added to the S&P 500 GICS Restaurants Sub-Industry Index. On the other hand, luxury fashion group, Capri Holdings Ltd. has lost its position in the S&P 500, moving to the S&P SmallCap 600. It was replaced by Domino’s. News reports carried that the S&P Dow Jones Indices preferably considered Domino’s because the company “is more representative of the largecap market space.”

Also joining Domino’s Pizza in the S&P 500’s new move is DexCom Inc (DXCM.O), a glucose monitoring system company. It replaces Allergan Plc (AGN.N), a pharmaceutical company, and AbbVie Inc (ABBV), on the list.