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1. Company Snapshot

1.a. Company Description

Domino's Pizza, Inc., through its subsidiaries, operates as a pizza company in the United States and internationally.It operates through three segments: U.S. Stores, International Franchise, and Supply Chain.The company offers pizzas under the Domino's brand name through company-owned and franchised stores.


It also provides oven-baked sandwiches, pasta, boneless chicken and chicken wings, bread and dips side items, desserts, and soft drink products.As of January 2, 2022, the company operated approximately 18,800 stores in 90 markets.Domino's Pizza, Inc.


was founded in 1960 and is based in Ann Arbor, Michigan.

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1.b. Last Insights on DPZ

Domino's Pizza's recent performance was negatively impacted by a 5.5% decline in earnings per share (EPS) in Q2 2025, despite a 14.9% increase in income from operations and 3.4% U.S. same-store sales growth. The company's earnings miss was partly offset by a successful new menu launch and expansion on delivery aggregators, which contributed to continued market share gains domestically and internationally. However, the decline in EPS was a concern, and the company's ability to maintain its growth momentum will be closely watched in the coming quarters.

1.c. Company Highlights

2. Domino's Pizza: A Recipe for Success

Domino's Pizza reported a strong third-quarter 2025 earnings, with actual EPS coming in at $4.08, beating estimates of $3.96. The company's US business had a robust quarter, with growth in all key areas, including carryout, delivery, and order count, resulting in meaningful market share growth. Global retail sales grew 6.3% in the quarter, with US retail sales up 7% driven by same-store sales and net store growth. Income from operations increased 11.8% in Q3, excluding the impact of foreign currency, primarily due to higher US franchise royalties and fees, and gross margin dollar growth within supply chain.

Publication Date: Oct -16

📋 Highlights
  • US Retail Sales Growth:: +7% driven by same-store sales acceleration to 5.2%, fueled by "Best Deal Ever" promotion and Parmesan Stuffed Crust.
  • Income from Operations Increase:: +11.8% (excluding foreign currency), driven by higher US franchise royalties and supply chain margin growth.
  • Store Expansion:: 29 net new US stores added, bringing total to 7,090 units, with 7,700 U.S. unit target by 2028.
  • Share Repurchase Activity:: $75M spent on 166,000 shares at an average price of $450/share in Q3.
  • Debt Refinancing:: $1.15B in new debt at a blended rate of 4.3%, refinancing debt due in October 2025.

Operational Highlights

The "Best Deal Ever" promotion was a significant driver of the US results, alongside the success of Parmesan stuffed crust pizza. The company added 29 net new stores in the US, bringing the total to 7,090. The outlook for 2025 remains unchanged, with expected global retail sales growth in line with 2024. The US comp is expected to be 3%, and international same-store sales growth is expected to be 1% to 2%. The company continues to expect operating income growth of approximately 8%, excluding the impact of foreign currency.

Growth Initiatives

Domino's is confident in delivering 3% comps in 2026, driven by innovations like aggregators, stuffed crust, and loyalty programs, which are expected to contribute to growth. The company has a history of launching products that can build over time, rather than limited-time offers. The US unit development target is 7,700 units by 2028, with a long-term target of 8,500 units. Management feels bullish about the target, citing the company's history of gaining share and competitors' stores closing.

Valuation

With a P/E Ratio of 24.02 and an EV/EBITDA of 18.43, the market seems to be pricing in a certain level of growth for Domino's Pizza. Analysts estimate next year's revenue growth at 6.8%. The company's ROIC is an impressive 59.33%, indicating a strong ability to generate returns on invested capital. However, the ROE is negative at -14.91%, which may be a concern. The Net Debt / EBITDA ratio is 4.65, indicating a manageable level of debt.

Outlook

The company is seeing a slowing across restaurant industry sales to start the fourth quarter, but remains confident in its ability to gain share against the QSR pizza industry. The "Best Deal Ever" promotion and the impact of DoorDash are expected to continue into Q4. Management believes its renowned value and ability to price for profitability will enable it to succeed in a competitive delivery market. If the macro environment worsens, Domino's 4Q comp growth could be below 3%. However, management believes short-term category pressure leads to long-term opportunity for the company.

3. NewsRoom

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Domino’s Pizza Inc $DPZ Shares Sold by Fisher Asset Management LLC

Dec -03

Source: defenseworld.net

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Top 15 High-Growth Dividend Stocks For December 2025

Dec -02

Source: seekingalpha.com

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DPC Dash- Domino's Pizza China Wins Fifth Seven-Star Award

Dec -02

Source: prnewswire.com

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Domino's® Unveils 50% Off Pizza Deal - Just in Time for Black Friday and Cyber Monday

Nov -28

Source: prnewswire.com

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Domino's® presenta una oferta del 50% de descuento en pizzas, justo a tiempo para el Black Friday y el Cyber Monday

Nov -28

Source: prnewswire.com

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Has DPZ Stock Been Good for Investors?

Nov -26

Source: fool.com

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Aviso Financial Inc. Purchases 401 Shares of Domino’s Pizza Inc $DPZ

Nov -25

Source: defenseworld.net

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UK's Domino's Pizza CEO steps down as strategy shift takes shape

Nov -25

Source: reuters.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.63%)

6. Segments

Supply Chain

Expected Growth: 6.5%

Domino's Pizza, Inc.'s 6.5% supply chain growth is driven by strategic investments in digital transformation, enhancing customer experience through online ordering and tracking. Additionally, the company's focus on supply chain optimization, including the implementation of a new enterprise resource planning system, has improved efficiency and reduced costs. Furthermore, Domino's has expanded its global footprint, increasing its store count and driving growth through international markets.

U.S. Stores

Expected Growth: 6.8%

Domino's U.S. stores' 6.8% growth is driven by increased same-store sales, successful marketing campaigns, and strategic menu pricing. Additionally, the company's focus on digital transformation, including online ordering and delivery capabilities, has enhanced customer convenience and experience, leading to increased sales and market share gains.

International Franchise

Expected Growth: 7.2%

Domino's Pizza, Inc.'s international franchise growth of 7.2% is driven by increasing demand for convenience food, expansion into new markets, strategic partnerships, and investments in digital technologies. Additionally, the company's focus on menu innovation, marketing efforts, and operational efficiencies have contributed to its growth momentum.

Intersegment Revenues

Expected Growth: 6.2%

Domino's Pizza, Inc. achieved 6.2% intersegment revenue growth driven by increased same-store sales, expansion of digital ordering channels, and strategic partnerships. Additionally, the company's focus on menu innovation, improved customer experience, and effective marketing campaigns contributed to the growth. Furthermore, the company's efforts to enhance its supply chain and logistics operations also supported the revenue increase.

7. Detailed Products

Handmade Pan Pizzas

Artisan-style pizzas made with fresh ingredients and a crispy crust

Thin Crust Pizzas

Light and crispy crust pizzas with a variety of toppings

Stuffed Cheesy Bread

Breadsticks filled with melted cheese and toppings

Bread Sides

Variety of breadsticks, including garlic bread and cinna stix

Salads

Freshly made salads with a variety of toppings

Sandwiches

Oven-baked sandwiches with a variety of fillings

Desserts

Variety of sweet treats, including chocolate lava crunch cakes

Combo Meals

Bundle deals that include pizza, sides, and drinks

8. Domino's Pizza, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Domino's Pizza faces moderate threat from substitutes, as customers have various alternatives for pizza, such as cooking at home, ordering from other restaurants, or opting for meal kits.

Bargaining Power Of Customers

Domino's Pizza has a large customer base, which reduces the bargaining power of individual customers. However, the rise of online ordering and food delivery platforms has increased customer power to some extent.

Bargaining Power Of Suppliers

Domino's Pizza has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's large scale of operations also gives it negotiating power over suppliers.

Threat Of New Entrants

The pizza industry has moderate barriers to entry, including high marketing and advertising expenses, as well as the need for a strong brand reputation. This limits the threat of new entrants.

Intensity Of Rivalry

The pizza industry is highly competitive, with several established players, including Papa John's, Pizza Hut, and Little Caesars. This intense rivalry puts pressure on Domino's Pizza to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 457.38%
Debt Cost 4.74%
Equity Weight -357.38%
Equity Cost 8.11%
WACC -7.30%
Leverage -127.98%

11. Quality Control: Domino's Pizza, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Darden

A-Score: 6.3/10

Value: 3.9

Growth: 6.0

Quality: 5.2

Yield: 6.0

Momentum: 8.0

Volatility: 8.7

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Wendy's

A-Score: 5.6/10

Value: 6.3

Growth: 5.9

Quality: 4.8

Yield: 9.0

Momentum: 0.0

Volatility: 7.3

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Domino's Pizza

A-Score: 5.5/10

Value: 4.4

Growth: 6.3

Quality: 6.0

Yield: 3.0

Momentum: 5.0

Volatility: 8.3

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Texas Roadhouse

A-Score: 5.5/10

Value: 2.6

Growth: 8.2

Quality: 5.7

Yield: 4.0

Momentum: 4.0

Volatility: 8.3

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Brinker

A-Score: 5.3/10

Value: 5.8

Growth: 8.0

Quality: 5.4

Yield: 0.0

Momentum: 8.5

Volatility: 4.3

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Wingstop

A-Score: 4.2/10

Value: 2.5

Growth: 9.4

Quality: 6.3

Yield: 2.0

Momentum: 1.5

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

272.32$

Current Price

416.55$

Potential

-34.62%

Expected Cash-Flows