The global QSR pizza is worth $85 billion with the U.S. The fragmentation is less prevalent when focusing on the pizza delivery market as 37% of it is controlled by the same group. The total QSR pizza industry is highly fragmented with 48% of the market consisting of regional chains and independents.
Industry Summaryīefore we dive into the valuation, we want to provide a brief summary of the industry.
#Dominos stock free
With the price at the time of this writing well above our target, we thought we'd revisit the valuation to see if the intrinsic value has changed.įor a more detailed look at Domino's, feel free to check out our previous article where we outline growth catalysts, risks, and competitive advantages. An Updateīack in December, we wrote an article about Domino's where we valued the company at $503 per share. Domino's will continue to see strong growth going forward, fueled by its ambition to continue opening many more stores. The pizza industry is fragmented which means that the company's size and brand recognition provide it with a competitive edge over the majority of its rivals. ( NYSE: DPZ) is a stable and predictable pizza industry leader with a great long-term track record. The resulting rally should carry DPZ steadily higher into the end of the year.Jetcityimage/iStock Editorial via Getty Images Investment Thesisĭomino's Pizza, Inc. I expect the shares to consolidate recent gains into this area before embarking on the next leg of their uptrend, which should come once the shares break above $300. That is your buy range for this stock should you choose to add it to your portfolio. That said, price support should emerge in the $280 to $290 region for DPZ. RSI readings north of 70 are indications that a stock is overbought and could be vulnerable to a near-term decline. The shares have broken out to all-time highs, and this has left DPZ vulnerable to short-term profit-taking.Īs you can see in the chart below, the stock’s 14-day Relative Strength Index (RSI) is quickly closing in on 70. So far this year, DPZ shares have skyrocketed more than 58%.īy comparison, the SPDR S&P Retail ETF (NYSE: XRT) has added just 15.5%, and the S&P 500 Index is up a paltry (by comparison) 7.5%.īut there is a caveat to buying into DPZ stock right now. Investing in Domino’s Stockĭomino’s fundamental strength has translated well for DPZ stock.
for the latter half of 2018, Domino’s looks hot and ready for your portfolio right now. With strong consumer growth expected in both the U.S. sales by 8.3% in the first half of the year. Domino’s has become Britain’s biggest pizza delivery firm.Īs a World Cup sponsor this year, the company sold 8.2 million pizzas during the event. That’s more than double the restaurant industry’s average revenue growth of 11%, according to CSIMarket.Īnd that growth is not just coming from stateside pizza orders either. Furthermore, revenue growth has averaged about 22% in the past four quarters and is projected to come in at nearly 24% for fiscal 2018. Domino’s has bested Wall Street’s earnings expectations in every quarter for the past year.
Who knew that offering to fix potholes on your street would resonate with the pizza delivery market?īut the marketing move has paid off big. The company has shown considerable moxie this year, taking advantage of the downfall of rival Papa John’s and launching its own viral marketing campaign. In a throwback to my college days, today’s pick is Domino’s Pizza Inc. And this company might even fix the streets in your neighborhood while it delivers huge gains for your portfolio. That brings the restaurant industry’s annualized three-month gain to 25.3%, the fastest pace since 1992.Īs you might have guessed, today’s free trade idea looks to boost your returns by taking advantage of the market-leading restaurant sector. What’s more, restaurants were gangbusters on the month, posting a 1.3% rise in sales to $61.6 billion. retail sales rose a larger-than-expected 0.5%, blowing past economists’ forecasts for a meager rise of 0.1%. While the bump in wages hasn’t been as significant as the Trump administration promised, it has benefited many select retail names in the discretionary sector. Judging from economic data so far, Ted’s plan is coming together nicely. Among his top picks were consumer discretionary stocks.Īs he noted in the January issue of The Bauman Letter, this sector would see a bump this year due to the Trump tax plan and a push toward higher wages. Have you been following my colleague Ted Bauman?Īt the beginning of the year, Ted highlighted a few market sectors that he believed would do well in this increasingly uncertain U.S. “I love it when a plan comes together!” - Hannibal Smith, “The A-Team”
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