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DPZ has a good long term record. Good dividend increases, share buybacks. The stock price peaked in 2021/22 and has declined a fair bit. It may have already bottomed.

Any critics or fans?

I note that M* rates Domino's Pizza (DPZ) 4* and CFRA rates it 5*. The look-ahead p/e (26?) still seems high to me, but I don't analyze quick-serve restaurant stocks as a full-time job. The company leverages a lot of technology in everything from ordering to prep to delivery.

FWIW, the company HQ is in the same building where I go for P/T and derm appointments. (Mich Medicine leases space in Domino's Farms.) :-)

...and boom, up 12% pre-market on news of listing on Uber app.

I was crafting a response to the original post yesterday morning, describing how I had opened up a small starter position in mid June at around $300/sh.
The risk reward at that level seemed pretty compelling to me.

Mainly because the pizza business seems pretty unkillable (at least looking around New England, where Im based) and because DPZ has been trading at reasonable valuations and quite cheap compared to its 5 year averages on a P/E, P/S, EV/S basis. This is for a business with 45% ROE. Revenue growth has been slow lately, but hey, maybe a new partnership with Uber can help. International growth seems like it has a long runway ahead of it.

It had been on my watch list for a while. DPZ also showed up on two MS best buys lists - one for companies with high operational efficiency, the other for defensible with stable earnings.

Now that its run from 300->400 Im kicking myself for not adding more quickly. Figured I'd have plenty of time as the downtrend has been going on for a while. The risk reward here is not as attractive, but suspect we get some closing of this huge recent gap.

-river valley

PS - I confess that I havent eaten a dominoes pizza since college in the 1980s :)

DPZ...

Good call, at least in the short term.

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