What to Know Before Buying Domino's Stock

Core Insights - Domino's Pizza is the largest pizza chain globally and has recently gained recognition as a Warren Buffett stock, indicating its potential as a solid investment opportunity [1] Company Overview - Domino's operates 21,700 stores across 90 markets, making it a leader in the pizza industry. The business model is characterized by low setup costs and a simple menu, making it suitable for developed markets [2] - 99% of Domino's stores are franchised, generating most of its revenue from franchise fees rather than direct pizza sales. The company continues to expand, opening 214 new stores in the third quarter of fiscal 2025, primarily internationally [3] Financial Performance - In the third quarter, global retail sales rose by 6.3% year-over-year, with U.S. comparable sales increasing by 5.3%. Overall company sales grew by 6.2%, and operating income saw a 12.2% increase, largely driven by higher food delivery prices and franchise fees [6][4] - The U.S. market showed stronger performance with comparable sales up 5.2%, while international comparable sales increased by 1.7%, but total international sales grew by 5.7% due to new store openings [7] Stock Performance - Domino's stock has underperformed the market in the current year but has outperformed over the past decade. The current stock price is $416.55, with a market cap of $14 billion [5][8] - The company offers a growing dividend with a yield of 1.6%, which is considered high for Domino's, reflecting its stable market position and potential as a reliable investment [10]