I know that this blog is designed for people and students to invest on a tight budget. Seeing the countless stocks over $100 per share isn’t what young investors want to put into their portfolio right out of the gate. However, Domino’s Pizza (DPZ) resides in a category that millennial buyers resonate with more than any other generation. Delivery Pizza! The stock has been a strong pick for the past 3+ years and paying the $180 dollar price of entry for one share is actually a solid value for one specific reason: they are totally demolishing the segment competition.
Papa Johns and Pizza Hut posted Q4 2017 earnings numbers of +5% and -4% respectively, while Dominos which has a very similar customer base and product line posted company growth of over 13% in the US. This is driven in part because of product improvement, menu changes, and a Domino’s app / points club which rewards customers and continues to drive same store growth. Without a direct effort to add more locations to their chain, Same Store Growth has propelled the company to a very profitable position in the marketplace and has marked the stock as one to keep an eye on for growth each quarter.
As College students are the ones targeted by the technology driven marketing of Pizza companies, Domino’s has done the best job of making ordering easy and making young people pay attention to their product. Look into their stock if you can stretch your budget a little more, and be prepared to grow as the marketplace has been disrupted by this company.