Domino’s Pizza, Inc. (DPZ): A Bull Case Theory 

We came across a bullish thesis on Domino’s Pizza, Inc. on Business Model Mastery’s Substack by The Antifragile Investor. In this article, we will summarize the bulls’ thesis on DPZ. Domino’s Pizza, Inc.’s share was trading at $426.71 as of October 3rd. DPZ’s trailing and forward P/E were 25.04 and 22.27 respectively according to Yahoo Finance.

Domino’s Pizza operates as a tech-enabled, asset-light franchising powerhouse with over 98% of its stores franchised globally. This structure allows the company to collect royalties and supply chain profits while franchisees bear store-level risks, driving consistent cash flows with minimal capital intensity. With more than 20,000 stores across over 90 markets, Domino’s scale provides strong brand recognition, supplier leverage, and superior technology investments relative to smaller competitors. Its early adoption of digital ordering has created a lasting convenience moat, with over 70% of U.S. sales coming from digital channels, reducing customer acquisition costs and strengthening loyalty.

The company’s in-house delivery network—one of the largest globally—offers faster, cheaper, and more reliable service than third-party platforms like Uber Eats or DoorDash, reinforcing its delivery logistics advantage. Domino’s also benefits from a vertically integrated supply chain, as franchisees are required to purchase ingredients through its system, ensuring quality control and steady recurring revenue. Its value positioning, anchored by affordable offerings such as the $7.99 carryout deal, supports traffic resilience during economic downturns. The capital-light model enables rapid, debt-free unit expansion, compounding growth faster than rivals reliant on corporate-owned stores.

While competitive pressure from aggregators and food inflation pose risks, Domino’s scale, procurement power, and selective marketplace integrations mitigate these challenges effectively. Overall, Domino’s stands out as a digital-first, cash-generative compounder combining technology, global logistics, and scale advantages, offering investors a resilient play on consumer spending and long-term earnings growth.

Previously we covered a bullish thesis on Domino’s Pizza, Inc. (DPZ) by Tired Salary Bear in April 2025, which highlighted the company’s franchise-driven model, strong unit economics, and consistent free cash flow growth. The company’s stock price has depreciated approximately by 8% since our coverage. This is because valuation multiples compressed. The Antifragile Investor shares a similar view but emphasizes Domino’s technology moat and global logistics scale.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.