Many of us would have heard of Domino’s Pizza before but did you know that Domino’s has also been a great stock to own? As the leading global quick-service restaurant in the pizza category, the share price of Domino’s Pizza Inc (NYSE: DPZ) has increased a phenomenal 2600% from 2004, easily outpacing the S&P 500 in the US.
Here are some of my thoughts on this amazing company.
A capital-light business model
Just to make sure we are on the same page, the Domino’s I am referring to is the brand owner that is listed on the New York Stock Exchange. There are other Domino’s Pizza franchisees that are the master franchisees in different countries. These companies are also listed on their respective exchanges.
Domino’s the brand owner derives its revenue from (1) royalties and fees it charges its franchisees, (2) providing the supply chain to its restaurants, and (3)...