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Here's How Much You'd Have If You Invested $1000 in Domino's Pizza a Decade Ago

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in Domino's Pizza (DPZ - Free Report) ten years ago? It may not have been easy to hold on to DPZ for all that time, but if you did, how much would your investment be worth today?

Domino's Pizza's Business In-Depth

With that in mind, let's take a look at Domino's Pizza's main business drivers.

Founded in 1960, Domino’s Pizza Inc., which delivers pizzas under the Domino’s Pizza brand, is a top player in the Quick-Service Restaurant or QSR Pizza category.

Through its subsidiaries, the company operates as a pizza delivery company in the United States and internationally, with 20,008 locations in more than 90 markets.

The company operates and reports through the following three business segments: U.S. stores, international franchises and supply chain.

U.S. stores (33% of total revenues in second-quarter fiscal 2023): The segment primarily consists of franchised stores but also has company-owned stores, which are used as sites for the promotion of new products and improvement of operational efficiencies. As of Jun 18, 2023, the company owned and operated 6,735 stores across the United States.

International franchise (6.9%): Domino’s has a network of franchised stores in more than 90 international markets. As of Jun 18, 2023, the company had 13,470 international franchise stores. Revenues at this segment primarily gain from royalty payments generated by retail sales from franchised stores. Notably, most of the company’s international stores operate under master franchise agreements.

Supply chain (60.1%): The segment operates 19 regional dough manufacturing and food supply chain centers in the United States. It also has a center each for thin crust manufacturing, vegetable processing, and providing equipment and supplies to our U.S. and certain international stores.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Domino's Pizza, if you bought shares a decade ago, you're likely feeling really good about your investment today.

According to our calculations, a $1000 investment made in November 2013 would be worth $5,410.97, or a 441.10% gain, as of November 6, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 147.40% and the price of gold went up 45.28% over the same time frame.

Going forward, analysts are expecting more upside for DPZ.

Domino's shares have outperformed the industry so far this year The company reported fiscal third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate by 27.1% and grew year over year. It is benefiting from solid global expansion, sales-boosting initiatives, menu innovation and digital advancements. During the quarter, global retail sales rose 5.3% year over year, thanks to higher international store sales and global net store growth. Also, the company launched its new loyalty program, Domino's Rewards, and disclosed the Emergency Pizza promotion. Earnings estimates for fiscal 2023 have increased in the past seven days, depicting analysts’ optimism. However, revenues missed the consensus estimate by 2.3% and declined year over year. Dismal supply chain and U.S. company-owned stores’ revenues drove the downtrend.

Over the past four weeks, shares have rallied 5.97%, and there have been 11 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.

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