Investment Thesis
Having its roots in pizza delivery, Domino's Pizza, Inc. (DPZ), founded in 1960, is battling third-party delivery operators offering the diners more restaurant choices and convenience. With deliveries making up more than two-thirds of its total orders, the company has missed consensus revenue estimates for five consecutive quarters. The stock has gained only close to 6.5% year-to-date compared to c. 31.4% of Dow Jones Restaurants & Bars Index.
However, DPZ is targeting USD25 bn of global retail sales by 2025 with an estimated annual compound growth of c. 10.0%, the midpoint