While Domino’s typically runs at stronger restaurant margins and lower buildout costs than its competitors, strong store-level sales suggest a meaningfully higher franchisee return even at identical margin structures and buildout costs, an advantage that we view as reflective of the firm’s strong brand.' against $1.2 million at Papa John’s and $860,000 Pizza Hut, per Euromonitor and our calculations), resulting in impressive franchise-level EBITDA just shy of $140,000 in 2022. To this effect, Domino’s sports higher average unit sales than peers ($1.3 million in the U.S.

'Comparable sales, which operate as 'flows,' accrue over time in higher average unit volumes ('stocks'), allowing franchisees to generate more EBITDA at the same operating margin-improving their cash-on-cash returns and underpinning a strong growth narrative. Here's Morningstar's Sean Dunlop explaining why Domino's has a wide competitive moat: And there's certainly no shortage of rival pizza brands out there. Restaurants are a notoriously difficult business to establish much of a competitive moat in. What Gives Domino's So Much Sticking Power? So it's worth diving into Domino's here and see if shares might be a compelling opportunity after the significant drawdown. That said, Domino's earnings results haven't been particularly bad it's not like sales have collapsed or anything. Now that the economy has reopened, there are more food options out there, so Domino's has to compete more aggressively for business. People stuck at home ordered a lot of delivery pizza. Some of this is likely related to the same pandemic-related dynamics that have hit so many industries. Since 2021, however, Domino's has cooled back off, with the stock dropping from above $500 back to $300.

Shares went up as much as 50x from the lows: After struggling through the 2008 financial crisis amid lackluster sales and poor brand positioning, Domino's brought in a charismatic CEO who turned everything around. It also operates five dough manufacturing and supply chain centers in Canada.Coldsnowstorm/iStock Unreleased via Getty Imagesĭomino's Pizza ( NYSE: DPZ) is one of the most remarkable corporate comeback stories in recent American history. The Company operates 22 regional dough manufacturing and supply chain centers, two thin crust manufacturing facilities, one vegetable processing center and one center, providing equipment and supplies to its United States and certain international stores. The international franchise segment is comprised of a network of franchised stores in approximately 90 international markets. The segment also operates a network of approximately 286 U.S. stores segment consists primarily of its franchise operations, which consist of approximately 6,400 franchised stores located in the United States. stores, international franchise and supply chain. The Company operates through three segments: U.S. is a pizza company, which operates two distinct service models within its stores with a significant business in both delivery and carryout. Consumer Discretionary : Hotels, Restaurants & Leisure | Mid Cap Blend Company profileĭomino’s Pizza, Inc.

10 shares of dominos stock