Domino's Pizza: The Greatest Of All Time?

Vaughn McNiff profile picture
Vaughn McNiff


  • Domino's is benefiting from the increase in mobile ordering.
  • DPZ is dominating the global pizza franchise market.
  • With the increase in domestic franchise growth, expect supply chain growth as well.

Investment Thesis

With the consolidation of a highly fragmented pizza market, companies who focus on technological advancements and high quality, low prices food are poised to dominate for the foreseeable future.


  • Increased ordering through mobile platforms
  • Franchise expansion

Catalysts Continued

Domino's (NYSE:NYSE:DPZ) is the leading technologically advanced pizza chain when it comes to how customers are able to access their brand. More than half of the companies U.S. sales are placed digitally and about 45% on average internationally. DPZ is currently accessible on more than 15 digital platforms. For example, a customer can order a pizza by simply texting a pizza Emoji to "DPIZZA". Other platforms that support digital ordering are the Amazon Echo, which allows the customer to speak to order a pizza without talking to a live person. Food from Domino's can also be ordered over twitter with a simple "tweet". The benefits of having technology work for the company is the elimination of wasted productivity answering phone calls and getting orders incorrect. With this new technology, customers can go on almost any smart device and place an order through Dominos in less than 30 seconds. The increase in productivity will allow the employees to focus more on processing the orders efficiently and less time manually taking orders, which we believe will have a positive effect on operating margins over time.

Along with Domino's technological advancements, the company has a business model like no other pizza chain. The company has roughly no overhead expenses unlike most of their direct competitors. This limited overhead is contributed to the number of stores the company actually owns, which only accounts for around 3% of total stores. The rest of the 97% of stores are franchise owned.

The large concentration of franchised owned stores creates steady cash flow generation for

This article was written by

Vaughn McNiff profile picture
Undergraduate Investor at California State University, Fullerton. I am a member of the Applied Securities Analysis Program (ASAP) where a group of students manage a portion of CSUF endowment fund.

Disclosure: I am/we are long DPZ. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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