Warren Buffett is probably the most famous investor alive today, drawing followers who want to replicate his success. But, oddly enough, his investing portfolio is replete with what the market would label "boring" stocks, harboring a tiny subset of what could be called tech stocks. It has zero young, hyped-up tech or artificial intelligence (AI) stocks, and is chock-full of dividend-paying consumer goods stocks.Investors getting their feet wet in the stock market would do well to actually heed Buffett's adv ...

Company Overview - Domino's Pizza is a well-known brand in the food industry, recognized for its pizza offerings and delivery services [1][3] - The company operates predominantly under a franchise model, with 99% of its stores owned by franchisees, generating revenue mainly through royalties [14] Market Position - Domino's holds a significant market share in the global pizza market, with $18.3 billion in global retail sales, and is positioned for growth in a fragmented market valued at $94 billion [4][10] - In 2022, Domino's delivered one out of every three pizzas in the U.S., indicating strong consumer preference [3] Growth Strategy - The company plans to expand its store count, targeting 7,700 stores in the U.S. by 2028, up from 6,800 in 2023, and aims to add over 4,500 stores internationally [16] - Domino's can enhance sales through product innovation, service improvements, and technology investments, including advancements in AI and robotics [11] International Presence - As of Q3 2024, Domino's has 14,072 international stores, nearly double its domestic locations, with international markets contributing to approximately half of its $18.9 billion in global retail sales [15] Investment Interest - Berkshire Hathaway recently acquired a stake in Domino's worth over half a billion dollars, highlighting the company's potential as a long-term investment opportunity [6][13]

Core Viewpoint - Domino's Pizza, Inc. (DPZ) has shown strong stock performance, gaining 9.9% over the past three months, outperforming both the Zacks Retail - Restaurants industry and the S&P 500 [1] Group 1: Performance and Strategy - DPZ's success is driven by its solid digital ordering system, the Hungry for MORE strategy, and a resilient asset-light model [1] - The company has opened approximately 1,750 stores since 2015, reinforcing its market leadership and ensuring long-term profitability for franchisees [7] - The Hungry for MORE strategy focuses on value, innovation, and market share growth, resonating with value-conscious consumers [5][6] Group 2: Financial Outlook - Domino's expects U.S. same-store sales growth of 3% or more for fiscal 2024, supported by a strong pipeline of promotions and innovative product launches [9] - The Zacks Consensus Estimate for fiscal 2024 earnings per share (EPS) has increased from $16.74 to $16.82 in the past 60 days [14] Group 3: Challenges and Competition - The international segment, which represents about half of global retail sales, is facing challenges from macroeconomic and geopolitical pressures [8][10] - DPZ revised its 2024 global net store growth guidance from 825-925 to 800-850 due to challenges in international markets [11] - Increased competition from established quick-service restaurant chains and aggressive promotions by competitors are putting pressure on Domino's market share [11] Group 4: Valuation - DPZ is trading at a forward 12-month price-to-earnings (P/E) multiple of 25.76X, below the industry average of 26.32X, indicating a discount relative to peers [12]

Group 1 - Domino's is partnering with All-Pro wide receiver Stefon Diggs to give away $1 million worth of free Emergency Pizzas to fans who had him on their fantasy football roster due to his season-ending injury [1][2][3] - The initiative is part of Domino's broader Emergency Pizza program aimed at addressing everyday emergencies with free pizza [4] - Domino's has a significant global presence with over 21,000 stores in more than 90 markets and reported global retail sales of over $18.9 billion for the trailing four quarters ended September 8, 2024 [6] Group 2 - To enter the giveaway, participants must sign up for Domino's Rewards, visit a specific website, and upload proof of having Diggs on their fantasy team [3][5] - The promotion is open to legal US residents aged 13 and older, with a limit of one entry per person [5]

Core Viewpoint - Domino's Pizza is highlighted as an attractive dividend-paying stock, having increased its dividends for twelve consecutive years, making it appealing for income-focused investors [1]. Dividend Information - Domino's currently pays a quarterly dividend of $1.51 per share, which totals $6.04 annually. The company has increased its dividends by over 600% since 2012 [2]. - To receive $1,000 in annual dividends, an investor would need to own approximately 166 shares, requiring an investment of about $77,190 based on a stock price of $465 [3]. Sales Performance - Domino's has achieved same-store sales increases for 30 consecutive years, with a 3% increase in U.S. restaurants and a 0.8% increase internationally in the fiscal third quarter ending September 8 [4]. - Operating income growth was reported at 5.7% after adjusting for foreign exchange rate effects [4]. Dividend Yield and Payout Ratio - The current dividend yield for Domino's is 1.3%, which is slightly above the S&P 500 average yield of 1.2%. Despite this, the company maintains a low payout ratio of 33%, indicating it can continue to raise dividend payments [5].

Core Viewpoint - Domino's stock has gained attention after Berkshire Hathaway, led by Warren Buffett, added it to its portfolio, which often influences investor interest and share price [1][2] Group 1: Company Performance - Domino's has shown better growth compared to other fast-food chains, with comparable-store sales rising 5% in Q3 and nearly 7% for the first three quarters of the year, contrasting with a 3% increase in the prior year [4] - The company has improved its expansion path after three years of below 4% annual comparable sales growth [4] - Domino's maintains an efficient business model, focusing on carry-out and delivery orders, which helps keep costs and prices low [5] Group 2: Financial Metrics - Domino's operating profit margin stands at approximately 18.49%, outperforming competitors like Chipotle (17.66%) and Wendy's (16.78%) [6][7] - The company generates ample cash flow, allowing for reinvestment in high-return areas such as international expansion [7] Group 3: Investment Considerations - Domino's shares are currently priced at about 28 times earnings and 3.5 times sales, which is consistent with historical valuations [8] - The company has potential for market share growth, particularly in international markets like South America, and is well-positioned during economic downturns [9] - However, the company may face challenges in sustaining strong earnings growth due to increased competition in home delivery, which could limit investor returns [10]

Company Overview - Domino's Pizza has a global footprint with over 21,000 locations worldwide, with nearly 70% of these located outside the United States [1] Analyst Background - The analyst specializes in restaurant stocks, with expertise in Business Administration, Accounting, and an MBA in Forensic Accounting and Controllership [1] - The analyst is the founder of Goulart's Restaurant Stocks, a company focused on analyzing restaurant stocks in the U S market, covering segments such as QSR, fast casual, casual dining, fine dining, and family dining [1] - The company employs advanced analytical models and specialized valuation techniques to provide detailed insights and actionable strategies for investors [1] - The analyst also contributes to academic and journalistic initiatives, particularly in institutions promoting individual and economic freedom, and has experience in accounting and business consulting across LATAM [1]

Core Viewpoint - Domino's Pizza is a well-known brand that has attracted attention from investors, including Warren Buffett, but its suitability for retirees' portfolios is under scrutiny due to recent performance trends [1]. Group 1: Business Performance - Domino's has experienced slower growth compared to previous years, with revenue surges during the pandemic followed by declines in some recent quarters [2]. - Despite the slowing growth, Domino's has maintained profitability, posting profits of at least $125 million in each of the past four quarters and achieving sales of at least $1 billion [3]. Group 2: Dividend Analysis - The company offers a modest dividend yield of 1.3%, which aligns with the S&P 500 average, making it a potential option for retirees seeking recurring cash flow [5]. - Over the past decade, Domino's has increased its dividend payouts by more than 500%, indicating strong dividend growth potential [6]. - With a payout ratio of less than 40%, there is ample room for continued dividend growth, which is crucial for retirees to offset inflation effects [7]. Group 3: Market Position and Stability - The demand for pizza remains strong, with Domino's benefiting from a consistent business model that has evolved over 135 years [8]. - The combination of business consistency and growing dividends positions Domino's as a potentially ideal stock for retirees, providing a stable income stream without significant value fluctuations [9].

Group 1 - Domino's Pizza, Inc. will voluntarily transfer its stock exchange listing to the Nasdaq Global Select Market from the New York Stock Exchange, effective December 31, 2024 [1] - Domino's common stock is expected to begin trading as a Nasdaq-listed security on January 2, 2025, while retaining its ticker symbol "DPZ" [1] Group 2 - Founded in 1960, Domino's Pizza is the largest pizza company globally, with over 21,000 stores in more than 90 markets [2] - The company reported global retail sales exceeding $18.9 billion for the trailing four quarters ended September 8, 2024 [2] - Independent franchise owners accounted for 99% of Domino's stores as of the end of the third quarter of 2024 [2] - In the U.S., Domino's generated over 85% of retail sales in 2023 through digital channels, utilizing several innovative ordering platforms [2]

Core Viewpoint - Domino's Pizza is positioned for growth with plans to expand its store count and maintain positive sales growth despite challenges faced by the broader restaurant industry [1][2][4]. Store Expansion - Domino's plans to open 800 to 850 new stores in 2024, increasing its global locations from 21,000 [4]. - Compared to competitors like McDonald's, which has over 42,000 locations, Domino's still has significant room for expansion [4]. Sales Growth - The company anticipates annual comparable sales growth of 2%-3% over the next five years, with recent U.S. growth at 3% and international growth at 0.8% [5]. - Domino's guidance projects a 7% annual retail sales growth through 2028, potentially reaching $6.54 billion in annual revenue by 2030 [6]. Margin and Shareholder Returns - Domino's expects to expand its operating margin by 8% over the next five years, outpacing its sales growth [7]. - The company has a history of returning capital to shareholders through dividends and share buybacks, with shares outstanding down 50% since 2004 [8]. Valuation and Investment Potential - As of now, Domino's stock has a P/E ratio of 28, aligning with the S&P 500 average, suggesting reasonable valuation for a steady growth company [10]. - Expected EPS growth of 10% due to operating income growth and share repurchases indicates potential annual shareholder returns exceeding 10% [11].