If I were a betting person, I would bet that pizza is probably the most common food on the average person’s list of favorite dishes. My guide? look at me Domino’s Pizza (NYSE: DPZ)the stock that turned fast, cheap pizza into fortunes for long-term investors. A modest investment of $1,000 in 2004 would be worth more than $54,000 today, returning more than 50 times your money in 20 years.
Winning stocks often continue to win, but you shouldn’t buy a stock just because it has done great things in the past. This does not guarantee anything regarding the future.
Instead, consider buying Domino’s Pizza stock like there’s no tomorrow — today, for these five reasons.
Pizza is on my list of favorite foods, but I think there are reasons why it resonates with so many people. It can be said that pizza is the perfect take-out meal. For starters, it’s much easier to order it ready-made than to make it yourself. Even if you have cooking skills, you’re talking about multiple ingredients, a mess, and the time you spend preparing and cooking it. You can get hot pizza from Domino’s in minutes.
Second, it’s remarkably customizable, giving it broad appeal to the average person. As long as you like bread and cheese, you probably like pizza. You can switch up the cheese and toppings to make it almost anything you want. Third, it became an economic means to feed the masses. Do you have a family of children? Go to a fast food burger joint and price four or five meals for a large Domino’s pizza. The bang for the buck is almost unbeatable.
Why has Domino’s performed so well in a market where competition is on almost every street corner? It’s about speed, price and quality. People may not think Domino’s tastes quite as good as their favorite food, pizza, but Domino’s has mastered offering customers a quick, cheap meal that tastes good enough to win your business.
The company has technological perks, including an app and website through which you can order and even track your order through the kitchen to your doorstep. Domino’s has steadily increased its market share in the United States, from 13.5% in 2015 to 22.9% last year.
Domino’s can continue to gain market share as it penetrates the market further. The company plans to increase the number of its stores from:
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From 6,930 in the United States to more than 8,500.
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14,032 in international markets to more than 40,000.
In other words, the company’s proven business model can scale for many years, so it doesn’t look like growth will be a concern anytime soon. Analysts expect the company’s earnings to grow at an annual rate of 11% over the long term.
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