Domino's Pizza Inc
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| jVQ | LOCK|#sn | LOCK|Q!%V$X%H |
Domino's Emphasis on Carryout, Fortressing Should Drive Market Share Gains Despite Tough Backdrop
Business Strategy and Outlook
With an 85% digital sales mix, a strong loyalty program, and a quickly growing carryout business, Domino's looks well positioned to navigate a turbulent industry environment. The firm boasts just north of 20% market share in the global quick-service pizza industry (Euromonitor), and has been a net share gainer over the past five years. While we expect a challenging couple of quarters, with evidence of consumer trade-down and declining industrywide traffic, we view the firm's long-term emphasis on defending franchisee profits, supporting its growing carryout business, strengthening its tech infrastructure, and building store density at the market level as prudent.
