Core Viewpoint - Domino's Pizza is highlighted as an attractive dividend-paying stock, having increased its dividends for twelve consecutive years, making it appealing for income-focused investors [1]. Dividend Information - Domino's currently pays a quarterly dividend of $1.51 per share, which totals $6.04 annually. The company has increased its dividends by over 600% since 2012 [2]. - To receive $1,000 in annual dividends, an investor would need to own approximately 166 shares, requiring an investment of about $77,190 based on a stock price of $465 [3]. Sales Performance - Domino's has achieved same-store sales increases for 30 consecutive years, with a 3% increase in U.S. restaurants and a 0.8% increase internationally in the fiscal third quarter ending September 8 [4]. - Operating income growth was reported at 5.7% after adjusting for foreign exchange rate effects [4]. Dividend Yield and Payout Ratio - The current dividend yield for Domino's is 1.3%, which is slightly above the S&P 500 average yield of 1.2%. Despite this, the company maintains a low payout ratio of 33%, indicating it can continue to raise dividend payments [5].

Domino's (DPZ -2.20%) stock found its way back onto many investors' radars last month after Warren Buffett's Berkshire Hathaway disclosed that it had added the pizza purveyor to its portfolio. News that Buffett is buying any stock tends to put a bright spotlight on it, and that attention can sometimes drive the share price higher.That's partly because Berkshire Hathaway has enough cash on its books that it can comfortably purchase entire companies outright, and partly because so many investors trust Buffett ...

Company Overview - Domino's Pizza has a global footprint with over 21,000 locations worldwide, with nearly 70% of these located outside the United States [1] Analyst Background - The analyst specializes in restaurant stocks, with expertise in Business Administration, Accounting, and an MBA in Forensic Accounting and Controllership [1] - The analyst is the founder of Goulart's Restaurant Stocks, a company focused on analyzing restaurant stocks in the U S market, covering segments such as QSR, fast casual, casual dining, fine dining, and family dining [1] - The company employs advanced analytical models and specialized valuation techniques to provide detailed insights and actionable strategies for investors [1] - The analyst also contributes to academic and journalistic initiatives, particularly in institutions promoting individual and economic freedom, and has experience in accounting and business consulting across LATAM [1]

Core Viewpoint - Domino's Pizza is a well-known brand that has attracted attention from investors, including Warren Buffett, but its suitability for retirees' portfolios is under scrutiny due to recent performance trends [1]. Group 1: Business Performance - Domino's has experienced slower growth compared to previous years, with revenue surges during the pandemic followed by declines in some recent quarters [2]. - Despite the slowing growth, Domino's has maintained profitability, posting profits of at least $125 million in each of the past four quarters and achieving sales of at least $1 billion [3]. Group 2: Dividend Analysis - The company offers a modest dividend yield of 1.3%, which aligns with the S&P 500 average, making it a potential option for retirees seeking recurring cash flow [5]. - Over the past decade, Domino's has increased its dividend payouts by more than 500%, indicating strong dividend growth potential [6]. - With a payout ratio of less than 40%, there is ample room for continued dividend growth, which is crucial for retirees to offset inflation effects [7]. Group 3: Market Position and Stability - The demand for pizza remains strong, with Domino's benefiting from a consistent business model that has evolved over 135 years [8]. - The combination of business consistency and growing dividends positions Domino's as a potentially ideal stock for retirees, providing a stable income stream without significant value fluctuations [9].

ANN ARBOR, Mich., Dec. 12, 2024 /PRNewswire/ -- Domino's Pizza, Inc. (NYSE: DPZ), the largest pizza company in the world, today announced that it will voluntarily transfer its stock exchange listing to the Nasdaq Global Select Market from the New York Stock Exchange, effective December 31, 2024, after market close. Domino's common stock is expected to begin trading as a Nasdaq-listed security on January 2, 2025. The Company will retain its current ticker symbol "DPZ."About Domino's Pizza®Founded in 1960, Do ...

Core Viewpoint - Domino's Pizza is positioned for growth with plans to expand its store count and maintain positive sales growth despite challenges faced by the broader restaurant industry [1][2][4]. Store Expansion - Domino's plans to open 800 to 850 new stores in 2024, increasing its global locations from 21,000 [4]. - Compared to competitors like McDonald's, which has over 42,000 locations, Domino's still has significant room for expansion [4]. Sales Growth - The company anticipates annual comparable sales growth of 2%-3% over the next five years, with recent U.S. growth at 3% and international growth at 0.8% [5]. - Domino's guidance projects a 7% annual retail sales growth through 2028, potentially reaching $6.54 billion in annual revenue by 2030 [6]. Margin and Shareholder Returns - Domino's expects to expand its operating margin by 8% over the next five years, outpacing its sales growth [7]. - The company has a history of returning capital to shareholders through dividends and share buybacks, with shares outstanding down 50% since 2004 [8]. Valuation and Investment Potential - As of now, Domino's stock has a P/E ratio of 28, aligning with the S&P 500 average, suggesting reasonable valuation for a steady growth company [10]. - Expected EPS growth of 10% due to operating income growth and share repurchases indicates potential annual shareholder returns exceeding 10% [11].

Core Insights - Domino's Pizza has transformed a $15,000 investment made in early 2010 into over $1 million today, showcasing its significant stock performance and growth strategy [2][12] - The company has successfully expanded its store count and aims to continue this growth trajectory, targeting 7,700 stores in the U.S. by 2028 and over 40,000 globally in the long term [8][12] Company Strategy - Domino's revamped its pizza recipe in 2008 and 2009, which was a pivotal moment that contributed to its success, alongside a strong value proposition for consumers [3][4] - The franchise model allows Domino's to maintain low overhead costs while leveraging technology for efficiency, making it competitive against local pizzerias [5][6] Market Position - The global pizza industry is valued at approximately $160 billion, with Domino's holding a strong position amidst fierce competition [2] - The company currently operates around 21,000 stores worldwide, with 6,906 in the U.S., and has opened 805 net new stores in the past year [7] Financial Performance - Domino's has consistently raised its dividend for 12 years and has reduced its share count by nearly 38% through stock buybacks, indicating strong cash flow management [9][10] - The company operates with a debt-to-EBITDA ratio between 4 and 6, which is higher than some peers, but has attracted investment interest from notable investors like Warren Buffett [10][11] Future Outlook - Analysts project an average annual earnings growth of 11%, leading to an estimated total return of approximately 12% annually, combining earnings growth and dividend yield [13] - While the current price/earnings-to-growth (PEG) ratio is 2.5, it is considered fairly priced with potential for market-beating performance in the coming decade [14]

Core Viewpoint - Warren Buffett's recent investment activity includes significant stock sales and a new $550 million stake in Domino's Pizza, which raises questions about the valuation and potential of the pizza chain [1][2]. Company Summary - Domino's Pizza has a current P/E ratio of 28, which is higher than Buffett's typical investment threshold, but the purchase may have been made at a lower valuation of just under 25 times earnings during the summer [4][5]. - The company's asset-light business model, with 98.6% of its restaurants being franchises, allows it to maintain a high valuation due to lower overhead costs and consistent revenue from franchise fees [6][7][8]. - The stock experienced a 20% decline after its second-quarter earnings release, attributed to a lowered outlook for international store openings, but management maintains a 7% revenue and 8% operating profit growth guidance for the year [10][12][13]. Industry Summary - Domino's sees significant growth potential internationally, with a target of 40,000 restaurants compared to the current 14,000, particularly in markets like India and China [14]. - In the U.S., Domino's aims to grow same-store sales by 3% and plans to open 175 new domestic stores annually, which could enhance its market share in a slow-growing quick-service restaurant (QSR) sector [16][17]. - The current retail environment may favor Domino's, as its low-cost value proposition and efficient delivery model could help it capture market share from weaker competitors [18].

Domino’s Pizza (NYSE: DPZ ) is the world’s most renown pizza brand. This article will focus on Domino’s unit economics, return on capital and valuation. The company was founded in 1960 with a single store and began franchisingI am a private investor with 15 years working in global blue chip asset management houses. My investment style involves identifying a handful of high quality businesses with strong competitive moats and durable economic franchises. Once I become comfortable with the investment case, I ...

Over a half-dozen prominent asset managers are dumping shares of Berkshire Hathaway's newest addition.There's a reason Warren Buffett is the most-followed billionaire money manager on Wall Street. Since becoming CEO of Berkshire Hathaway (BRK.A 0.70%) (BRK.B 0.95%) in the mid-1960s, the appropriately named "Oracle of Omaha" has overseen a scorching-hot aggregate return that surpassed 5,800,000%, as of the closing bell on Nov. 26.Given Buffett's fairly consistent outperformance of the benchmark S&P 500, both ...