Domino's Pizza Enterprises Ltd DMP

Morningstar Rating
A$34.32 +0.28 (0.82%)
View Full Chart

Company Report

Domino's Start to Fiscal 2025 Underwhelming, but Long-Term Potential Intact

Domino's Pizza Enterprises is the Australian master licence holder of the Domino's Pizza brand. It also has operations in New Zealand, Japan, Singapore, Malaysia, France, Germany, Belgium, Luxembourg, Taiwan, Cambodia, and the Netherlands. The stock suits investors seeking exposure to the food and beverage sector. Management is active, importing marketing strategies from the United States, or creating new ones, and applying them to local trends in individual markets. Management has adapted to market trends by refreshing the product range, including healthier ingredients and gourmet styles, and transitioning to online ordering.

Price vs Fair Value

DMP is trading at a 396% premium.
Price
A$34.04
Fair Value
A$77.00
Uncertainty
High
1-Star Price
A$91.50
5-Star Price
A$33.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Domino's is a highly visible brand based on a successful US business model. Across Domino's three regions, sales have increased at a CAGR of 9% over the past five years. We expect network sales to continue in the high single digits over the next five years.

Bears

There is a high level of competition, stemming from independent pizza stores and other quick-service restaurants.

Trading Information

Previous Close Price
A$34.04
Day Range
A$33.9734.53
52-Week Range
A$28.7859.49
Bid/Ask
A$34.32 / A$34.33
Market Cap
A$3.17 Bil
Volume/Avg
88,643 / 519,973

Key Statistics

Price/Earnings (Normalized)
22.13
Price/Sales
1.31
Dividend Yield (Trailing)
3.11%
Dividend Yield (Forward)
3.11%
Total Yield
3.11%

Company Profile

Domino's Pizza Enterprises is engaged in the operation of fast-food pizza outlets and franchise service. The company holds the exclusive master franchise rights for the Domino's brand and network in Australia, New Zealand, Japan, Singapore, Malaysia, Taiwan, Germany, France, Belgium, Luxembourg, Cambodia, and the Netherlands. It entered the German market via a joint venture and acquisition. The Domino's brand is owned by NYSE-listed Domino's Pizza Inc.
Sector
Consumer Cyclical
Industry
Restaurants
Stock Style Box
Mid Core
Total Number of Employees
1,106

Competitors

Valuation

Metric
DMP
YUM
MCD
Price/Earnings (Normalized)
22.1326.8425.72
Price/Book Value
5.08
Price/Sales
1.315.608.57
Price/Cash Flow
13.0622.8823.20
Price/Earnings
DMP
YUM
MCD

Financial Strength

Metric
DMP
YUM
MCD
Quick Ratio
0.471.100.82
Current Ratio
0.851.441.08
Interest Coverage
3.864.718.07
Quick Ratio
DMP
YUM
MCD

Profitability

Metric
DMP
YUM
MCD
Return on Assets (Normalized)
4.37%24.13%16.13%
Return on Equity (Normalized)
21.25%
Return on Invested Capital (Normalized)
6.41%54.12%20.86%
Return on Assets
DMP
YUM
MCD

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