Summary
- Domino’s Pizza has struggled to outperform the S&P 500 in recent years, but it has grown its revenue, operating income, and net income.
- Its vertically integrated supply chain and profitable franchise model have contributed to its success.
- Additionally, despite declining return on invested capital, Domino’s has grown its free cash flow and has an FCF yield of 3.69%.
- Its ability to grow dividend payouts in all but one of the last 10 years reflects the growing profitability of the company throughout the last decade.
- The firm enjoys numerous competitive advantages.
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Strong Economics And Limited Margin Of Safety In Domino's Pizza