- Domino's Pizza is one of the best-performing restaurant stocks this year, up 37% vs. a 15% rise in the restaurant industry group.
- The company reported another quarter of solid results in Q3, with high double-digit comp sales growth on a 2-year stacked basis, and an impressive unit growth rate internationally.
- However, while Domino's continues to see outstanding growth internationally, the stock now trades at 34x FY2022 earnings estimates, offering little margin of safety for new investors.
- So, while I see Domino's as a top-5 name in the restaurant space, I don't see any way to justify paying above $530.00 for the stock.
For further details see:
Domino's Pizza: Valuation No Longer Attractive