Domino's Pizza Will Keep Delivering, But It Is A Hold At Current Prices
Summary
- Berkshire Hathaway continues to increase its Domino's Pizza stake, signaling confidence in the business model and the franchisee partnership culture.
- Domino's delivers impressive returns on invested capital, leveraging its scale, franchise model, and supply chain dominance to drive profitability and growth.
- The company is well-positioned for further expansion through digital sales and strategic delivery partnerships.
- Despite a competitive market, Domino's has built a strong competitive position and has room to increase the store count at 3.5% per year.
- Although I expect Domino's to deliver above expectations, the current stock price is not justified due to the elevated debt levels.
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