DRI - Domino's: Bullish As Pandemic-Proof Business Model Exploits Weak Rivalry
Investment Thesis
While the full-service sector reliant on dining-in shut the outlets as consumers stay indoors in the pandemic, the QSR operators remain resilient thanks to their large off-premise infrastructure. As social distancing measures continue and pantry loading wanes, kitchen-weary consumers will opt for delivery and takeout sustaining the QSR’s sales momentum until the virus fears subside. Meanwhile, the independents struggling for funds could go under, softening the competition in the highly fragmented U.S. QSR pizza market where Domino's Pizza, Inc. (DPZ) leads in delivery.
In addition to pricing flexibility and scalability afforded