Initiating Coverage of Domino’s Pizza With a $275 FVE and Wide Moat; Shares Fairly Valued
We are initiating coverage on Domino’s Pizza at a $275 per share valuation, assigning the quick-service pizza chain a wide moat rating. Our valuation assumes 7% average annual top-line growth, restaurant margins expanding to mid-to-high 20s (from 23% in 2018) and adjusted operating margins expanding to approximately 20.5% by 2028 (from 16.7% in 2019). Our long-term sales growth forecast assumes low- to mid-single-digit comp growth (owing to annual inflationary price increases, carryout expansion...Domino's Pizza is a pizza company. The company is primarily engaged in the following business activities: retail sales of food through the company-owned Domino's Pizza stores; sales of food, equipment and supplies to the company-owned and franchised Domino's Pizza stores through the company-owned supply chain centers; receipt of royalties, advertising contributions and fees from United States Domino's Pizza franchisees; and receipt of royalties and fees from international Domino's Pizza franchisees. The company's menu features pizza products with varying sizes and crust types. The company's store also provides oven-baked sandwiches, pasta, boneless chicken and wings, bread side items, desserts and soft drink products.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.