Company Overview
Domino's Pizza, Inc. operates as a global pizza company that generates revenue through company-owned and franchised stores offering pizzas, bread products, and wings under the Domino's brand name. The company is classified within the Consumer Cyclical sector and specifically functions within the Restaurants industry, positioning it as a retailer subject to consumer discretionary spending trends. As of the latest data, the firm holds a market capitalization of $11.71B and reports an annual revenue of $4.94B based on trailing twelve-month figures. The organization employs a workforce of 6,200 individuals to support its operations across the United States, international franchise territories, and supply chain segments. These valuation and revenue metrics indicate that Domino's Pizza, Inc. maintains a significant market presence within the competitive restaurant landscape, reflecting a substantial operational footprint and established brand equity that supports its business model.
Financial Health
Domino's Pizza, Inc. reported a revenue of $4.94B, a net income of $601.70M, and an EBITDA of $1.01B for the trailing twelve months. The substantial gap between the $4.94B in revenue and the $601.70M in net income reveals a cost structure where operating expenses, including cost of goods sold and overhead, consume approximately 87.8% of total sales before interest and taxes. The company generated free cash flow of $508.72M, which provides significant financial flexibility to fund capital expenditures, service debt obligations, or pursue strategic acquisitions without relying heavily on external financing. Profitability analysis shows a gross margin of 28.6%, an operating margin of 18.1%, and a profit margin of 12.2%, indicating that the company retains more than a quarter of sales revenue after direct costs and maintains a healthy operating efficiency. Regarding liquidity and leverage, the firm holds $295.35M in cash against a total debt load of $5.30B, while the debt-to-equity ratio is listed as N/A, suggesting a capital structure where equity may be minimal or the ratio is not publicly disclosed in standard formats. The current ratio stands at 1.65, which indicates that the company possesses sufficient current assets to cover its short-term liabilities with a comfortable margin of safety. Return on Assets is reported at 34.6%, demonstrating highly effective utilization of asset base to generate earnings, whereas Return on Equity is listed as N/A, preventing a direct assessment of returns relative to shareholder equity in this specific reporting context.
Valuation Assessment
The stock carries a P/E Ratio (TTM) of 19.80 and a Forward P/E of 16.18, implying that the market expects earnings growth in the future that would justify a lower multiple compared to historical performance. The price-to-book ratio is reported at -3.08, a figure that typically indicates a negative book value often associated with accumulated retained earnings or specific accounting treatments rather than a market premium over tangible book value. Alternative valuation metrics include a price-to-sales ratio of 2.37 and an EV/EBITDA of 17.51, which suggest the company is valued at a premium relative to its sales and earnings before interest, taxes, depreciation, and amortization, reflecting strong brand value and recurring revenue streams. The 52-week price range spans from a low of $346.39 to a high of $499.08, providing a clear band of historical volatility for price analysis. While the exact current trading price is not explicitly stated as a single number to calculate a precise percentage, the forward P/E of 16.18 being lower than the trailing P/E of 19.80 suggests the market anticipates a positive earnings trajectory that could push the stock price closer to the 52-week high over time. The stock exhibits a beta of 1.16, meaning its price volatility is higher than the broader market, moving 16% more than the market index on average during periods of fluctuation.
Growth & Income
Domino's Pizza, Inc. demonstrated a revenue growth rate of 3.1% year-over-year while posting an earnings growth rate of 30.1% year-over-year, indicating that the company is leveraging pricing power or cost efficiencies to grow profits at a pace significantly faster than its top-line sales expansion. For dividend payers, the company offers a dividend yield of 2.3% with a payout ratio of 39.6%, a level that appears sustainable given the robust earnings growth and positive free cash flow generation. The high payout ratio relative to the high earnings growth suggests the company is returning a portion of its increasing profits to shareholders while retaining a majority for reinvestment. The overall growth and income profile combines moderate top-line expansion with accelerating earnings and a consistent dividend policy, offering a balanced return characteristic for income-focused investors seeking exposure to the restaurant sector.