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Domino’s Pizza: Five-Year Stock Performance Astounds

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Domino’s five-year stock performance

Domino’s Pizza (DPZ) stock has grown about seven times in the last five years, up to $104 from $13. That’s a ~650% return on investment and a compound annual growth rate of 49.6%. Over the five-year period, earnings per share, or EPS, has grown 97%, from $1.50 to $2.96 in fiscal 2014.

Over the same period, Yum! Brands (YUM), which operates Pizza Hut, returned 130%, and Papa John’s (PZZA) returned 416%. Papa Murphy’s (FRSH) debuted on NASDAQ in May 2014, and the stock has grown from $11.05 to $16.50.

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Fourth-quarter earnings overview

These are the highlights from Domino’s earnings release:

  • adjusted EPS – $0.91, which increased 16% year-over-year from $0.78
  • revenue – up 13% to $643 million from $566 million year-over-year
  • gross margin – down 29.5% from 30.5% of sales
  • net margins – up to 8% from 7.9% year-over-year

The Consumer Discretionary Select Sector SPDR Fund (XLY) has about 10% of its holdings invested in restaurant stocks including 1.5% in Yum! Brands and 4% in McDonald’s (MCD).

Further reading

For more on other restaurant stocks, read An in-depth overview of the US restaurant industry.

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