DPZ (Domino's Pizza Inc) vs S&P 500 Comparison

DPZ

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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DPZ

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

DPZ

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

DPZ

MCD

SBUX

CMG

CPG

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Domino's Pizza Inc
Glance View

Economic Moat

None

Market Cap

14.3B USD

Industry

Hotels, Restaurants & Leisure

Domino's Pizza Inc. began its journey in 1960 as a single pizza store in Ypsilanti, Michigan. Over the decades, it has transformed into a global leader in the pizza delivery industry. The company's business model hinges primarily on franchising, which has allowed it to expand rapidly while maintaining modest capital expenditures. Franchisees operate the vast majority of Domino's stores, providing a steady stream of revenue through royalties and sales of food and equipment from Domino’s supply chain division. This symbiotic relationship with its franchisees enables the company to scale its operations efficiently while focusing on innovations that enhance customer experience. Central to Domino's success is its relentless emphasis on technology and logistics. With a robust digital ordering platform, Domino's has consistently led the industry in online sales, turning smartphone apps and websites into its virtual storefronts. This digital prowess is supported by an impressive supply chain network that ensures timely delivery of ingredients to its stores, helping franchisees meet customer demands effectively. Furthermore, Domino's commitment to its "fortressing" strategy aims to improve delivery speeds by opening more stores in strategically chosen locations. Through a combination of franchising, digital innovation, and efficient logistics, Domino’s has carved out a profitable niche in the highly competitive food service industry.

View DPZ Analysis

DPZ Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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DPZ

vs

S&P 500

Stocks Performance
DPZ vs S&P 500

Performance Gap
DPZ vs S&P 500

Performance By Year
DPZ vs S&P 500

Competitors Performance
Domino's Pizza Inc vs Peers

Domino's Pizza Inc
Glance View

Company

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DPZ vs S&P 500

Stocks Performance DPZ vs S&P 500

Performance Gap DPZ vs S&P 500

Performance By Year DPZ vs S&P 500

Competitors Performance Domino's Pizza Inc vs Peers

Domino's Pizza Inc Glance View

Company

Help

Tools

Stocks

DPZ

vs

S&P 500

Stocks Performance
DPZ vs S&P 500

Performance Gap
DPZ vs S&P 500

Performance By Year
DPZ vs S&P 500

Competitors Performance
Domino's Pizza Inc vs Peers

Domino's Pizza Inc
Glance View