Domino's Pizza Inc (DPZ, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With its shares currently trading at $423.85 and experiencing a daily increase of 0.88%, despite a three-month decline of -19.37%, the company stands out in the competitive restaurant industry. A detailed analysis, supported by the GF Score, indicates that Domino's Pizza Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have been proven to correlate strongly with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. For Domino's Pizza Inc, the GF Score is an impressive 95 out of 100, highlighting its potential for market-leading returns.
- Financial strength rank: 4/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 7/10
- Momentum rank: 8/10
Understanding Domino's Pizza Inc Business
Domino's Pizza Inc, with a market cap of $14.82 billion and annual sales of $4.61 billion, is the largest player in the global pizza market, surpassing competitors like Pizza Hut and Papa John's. The company operates and franchises approximately 20,600 stores worldwide and is renowned for its efficient supply chain and diverse menu offerings, which include pizza, wings, salads, and desserts. Its operational efficiency is reflected in a robust operating margin of 18.5% for 2023.
Profitability and Growth Metrics
Domino's Pizza Inc's Operating Margin has shown a positive trend over the past five years, peaking at 18.30% in 2023. This growth in profitability is complemented by a high Profitability Rank of 10/10. Additionally, the company's Piotroski F-Score and Predictability Rank further affirm its solid financial health and consistent operational performance.
Domino's Pizza Inc has also demonstrated strong growth, with a 3-Year Revenue Growth Rate of 6.8%, and notable increases in EBITDA over the past few years. These metrics underscore the company's ongoing commitment to expansion and operational excellence.
Conclusion
Given Domino's Pizza Inc's robust financial strength, exceptional profitability, and sustained growth metrics, the GF Score distinctly highlights the company's superior position for potential market outperformance. Investors looking for similar opportunities can explore other high-performing companies using the GF Score Screen available to GuruFocus Premium members.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
