Quality Investor

Domino's Pizza, Inc.

Rank #7Capital Return

DPZ · Nasdaq · Consumer Cyclical

Domino's Pizza, Inc. (DPZ) — Rank #7 by gross profitability (GP/assets 1.12) · ROE -15.1% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0001286681 · all metrics point-in-time as of the filing date.

About

Domino's Pizza, Inc. operates as a pizza company worldwide.

Show more

The company operates through three segments: U.S. Stores, International Franchise, and Supply Chain. It offers pizzas under the Domino's brand name through company-owned and franchised stores. The company also provides bread products, wings, boneless chicken, pastas, oven-baked sandwiches, soft drink products and desserts. In addition, it offers parmesan stuffed crust pizza; spicy chicken bacon ranch specialty pizza; and garlic, and cinnamon bread bites, as well as croissant, chocolate volcano, and chicken burst pizzas. Domino's Pizza, Inc.

was founded in 1960 and is based in Ann Arbor, Michigan.

Industry
Restaurants
Sector
Consumer Cyclical
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
January 2

Price History

DPZ-32.5% · -7.5% CAGRSPY+80.3% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$10.35B

P/E (annual)

17.8

P/S (annual)

2.1

P/B

P/OCF (annual)

13.1

Shareholder Yield

4.4%

Employees

6,200

Industry

Restaurants

Exchange

Nasdaq

Signal Flags

2 green
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
1.12
Return on equity
-15.1%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
Current ratio
1.54×
Net cash
$177.87M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.9%

Growth

2/2 pass
Revenue growth
5.0%
Piotroski F-Score
8 / 9
Share dilution
-2.2%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

4.6%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -2.2% — per-share value needs a total required return of 2.5% once share-count change is priced in.

vs. own 6-year median revenue growth: 5.0%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

0.5%

r = 10% (base)

4.6%

r = 12%

8.2%

Net debt / market cap: -1.7%

Note: current FCF margin is 1.5σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $671.5M3Y mean FCF: $556.3M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

22.8xCheap
22.8xmed 30.8x44.1x

P / S

Price / revenue per share

2.8xCheap
2.4xmed 3.5x4.3x

P / GP

Price / gross profit per share

6.9xCheap
6.7xmed 9.0x12.3x

P / FCF

Price / free cash flow per share

20.4xCheap
20.4xmed 32.3x42.4x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

1.12

Primary signal (Novy-Marx).

1st of 5 SIC 51 peers

Return on equity

-15.1%

Gross margin

40.0%

2nd of 5 SIC 51 peers

Revenue growth (YoY)

5.0%

RPO growth (YoY)

-17.3%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

2.9%

Revenue CAGR (5Y)

3.7%

Earnings CAGR (3Y)

10.0%

FCF CAGR (3Y)

20.1%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

Current ratio

1.54×

4th of 5 SIC 51 peers

Quick ratio

0.80×

Net cash

$177.87M

Cash & equivalents minus total debt.

Recession resistance

Revenue through recessions

Worst single-year YoY revenue decline, 17 years of history

No recession-window coverage
2008-2009 (GFC)
N/AN/A
2020 (COVID)
N/AN/A
Worst year on record(any fiscal year, not recession-limited)
-1.3%Mild decline

Cash-flow health

Free cash flow

$671.50M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.12

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.9%

Stock-based comp intensity.

Dividend safety

Composite score

3.2 / 5

Good
Payout ratio
39.4%4/5 Strong
FCF coverage
2.84×4/5 Strong
Dividend growth streak
9 yr4/5 Strong
Balance-sheet health
D/E N/A · IC 4.87×1/5 Weak

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212025
Capital Return
Value