Where Will Domino's Pizza Stock Be in 5 Years?

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].