Stock Analysis

Stock Analysis · Domino's Pizza Inc (DPZ)

Overview

Domino’s Pizza, Inc. is a global pizza company built around a heavily franchised model. In practical terms, many Domino’s-branded stores are owned and operated by franchisees, while Domino’s supports them with the brand, digital ordering platforms, advertising, supply chain services, and operational standards. The business is designed to scale by growing store count and improving sales at existing locations, while keeping corporate-owned restaurant exposure relatively limited.

Its revenue is primarily generated through a combination of selling food and supplies to franchisees (via its supply chain network), collecting royalties and fees from franchisees, and sales from a smaller base of company-owned stores. Based on the company’s segment reporting in annual filings, the main sources of revenue are typically:

Supply chain (ingredients, food, and other items sold to franchise stores)
U.S. franchises (royalties and fees tied to franchisee sales, plus certain other franchise-related revenue)
International franchises (royalties and fees tied to franchisee sales outside the U.S.)
Company-owned stores (direct restaurant sales, usually the smallest portion)

This mix matters for long-term shareholders because it means Domino’s economics are influenced not only by consumer demand for pizza, but also by franchisee health, supply chain volumes, and the company’s ability to keep its system competitive (pricing, promotions, delivery/carryout convenience, and digital experience).

Across recent years, total revenue has trended upward (about $4.36B in 2021 to about $4.71B in 2024). Operating income and net income also rose over this period, suggesting profitability improved despite the normal cost pressures a restaurant system faces (ingredients, labor, and logistics).

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 07, 2026
Context
Sector	Consumer Cyclical
Industry	Restaurants
Market Cap ⓘ	$13.41B
Beta ⓘ	1.17
Fundamental
P/E Ratio ⓘ	23.09	29.16
Profit Margin ⓘ	12.16%	7.98%
Revenue Growth ⓘ	3.10%	6.90%
Debt to Equity ⓘ	-128.65%	69.29%
PEG ⓘ	2.06
Free Cash Flow ⓘ	$631.52M

Domino’s is shown with a market capitalization of about $13.4B and a beta of ~1.17, indicating the stock has tended to move somewhat more than the broader market. The company’s P/E ratio is ~23.1, below the displayed industry median (~29.2). Profitability stands out: the profit margin is ~12.2% versus an industry median of ~8.0%. Growth is more moderate: year-over-year revenue growth is ~3.1% versus an industry median of ~6.9%. Free cash flow over the trailing twelve months is about $632M, which can be an important resource for reinvestment, debt service, and shareholder returns.

Growth (Medium)

Domino’s operates in the broad restaurant industry, where demand tends to be resilient over long periods but can swing with consumer budgets, competition, and changes in food and labor costs. Within that, pizza delivery and carryout are mature categories in the U.S., while international markets can still offer room for additional store growth depending on the country and local competitive landscape. The company’s model is structured to grow through franchise expansion, comparable sales improvements, and continued emphasis on convenience (especially digital ordering and delivery/carryout execution).

The year-over-year revenue growth pattern shows variability over time, including periods of low or slightly negative growth and later re-acceleration. More recently, growth appears positive again (low-to-mid single digits in the latest periods shown), which is consistent with a mature brand that may rely more on execution, market share, and store growth than on rapid category expansion.

Free cash flow has remained substantial in absolute dollars (roughly the mid-$400M to $600M range across the periods shown). This type of cash generation can help support long-term flexibility, but the strategic impact depends on how it is allocated (for example: technology, supply chain capacity, marketing, franchise support, and the balance between debt reduction and shareholder returns).

Potential catalysts for future growth often include continued net unit expansion (more stores), improved store-level economics for franchisees (supporting reinvestment), product and menu innovation, and sustained performance of the digital ordering ecosystem. Domino’s filings also emphasize execution and system-wide initiatives that can lift franchisee sales, which in turn can lift royalty-based revenue.