Domino's Pizza Group offers an attractive >12% earnings yield, moderate growth, and robust cashflow, trading at a discount amid management uncertainty. The company's asset-light franchise model delivers high returns on capital, with gross margins in the upper 40% and operating margins in the high teens. Recent CEO departure and focus on core business have created uncertainty but should eventually be a positive; prudent capital allocation and operational efficiency remain key to future returns.
Domino's Pizza stands out for its consistent global execution, asset-light franchise model, and strong brand, delivering steady growth and shareholder returns. DPZ delivered solid Q3 results, with robust same-store sales, expanding margins, and impressive cash flow conversion compared to peers like YUM and PZZA. Despite ambitious expansion targets and international risks, DPZ trades at lower multiples than peers, offering a reasonable margin of safety and an attractive risk-reward profile.
The pizza chain rolled out its first rebrand in years as it aims to keep selling pizzas to cost-conscious consumers.
| Hotels, Restaurants & Leisure Industry | Consumer Discretionary Sector | Russell J. Weiner CEO | NASDAQ (NGS) Exchange | 25754A201 CUSIP |
| US Country | 6,400 Employees | 15 Dec 2025 Last Dividend | - Last Split | 13 Jul 2004 IPO Date |
Domino's Pizza, Inc., a prominent figure in the global pizza market, operates its business through a mix of company-owned and franchised stores across the United States and internationally. Founded in 1960 and based in Ann Arbor, Michigan, the company has expanded its footprint worldwide, functioning through three main segments: U.S. Stores, International Franchise, and Supply Chain. Domino’s prides itself on delivering hot and tasty pizzas to customers, underlined by a commitment to consistent quality and innovation in its offerings.
Domino's Pizza, Inc. provides a variety of food items along with its flagship pizzas, catering to a wide range of customer preferences. The offerings include: