Added to YB: 2026-08-26
Pitch date: 2026-08-23
DPZ [neutral]
Domino's Pizza, Inc.
-9.72%
current return
Author Info
No bio for this author
Company Info
Domino's Pizza, Inc. operates as a pizza company worldwide. The company operates through three segments: U.
Market Cap
$10.3B
Pitch Price
$335.70
Price Target
317.00 (+5%)
Dividend
N/A
EV/EBITDA
13.27
P/E
17.11
EV/Sales
3.00
Sector
Hotels, Restaurants and Leisure
Category
value
Domino's Pizza: Is This Pizza Royalty Broken?
DPZ (pass): Author values DPZ at ~$317 (17x EV/EBITDA, 20% margin of safety) vs. ~$336 current—no margin of safety, so passing despite quality. Thesis: royalty-like franchise (85% royalty margins, 15% EPS CAGR over 20yrs, market-share gains via fortressing/own delivery) but growth has broken—revenue CAGR fell from 11% to 3%, same-store sales flat US/intl, multiple already halved from 40x to 19x earnings. Key risks: ~5x debt/EBITDA funding buybacks (securitized royalties), GLP-1 demand headwinds, low-margin aggregator dependence. Base/bear returns below hurdle rate.
Read full article (14 min)