5 Best Pizza Stocks To Buy Now

3. Domino’s Pizza, Inc. (NYSE:DPZ)

Number of Hedge Fund Holders: 34

Domino’s Pizza, Inc. (NYSE:DPZ) is a multinational pizza company that operates through three segments – U.S. Stores, International Franchise, and Supply Chain. It is one of the best pizza stocks to invest in. On April 27, Domino’s Pizza, Inc. (NYSE:DPZ) reported a Q1 GAAP EPS of $2.93, beating Wall Street estimates by $0.20. The revenue of $1.02 billion, however, missed market consensus by $10.83 million. The company also paid a  $1.21 per share quarterly dividend to shareholders on June 30. 

According to Insider monkey’s first quarter database, 34 hedge funds were long Domino’s Pizza, Inc. (NYSE:DPZ), compared to 44 funds in the earlier quarter. D E Shaw is a significant position holder in the company, with 448,865 shares worth $148 million. 

LRT Capital made the following comment about Domino’s Pizza, Inc. (NYSE:DPZ) in its October investor letter:

“Domino’s Pizza, Inc. (NYSE:DPZ) is the world’s largest franchisor of pizza restaurants with over 13,800 locations in 85 countries. As for any restaurant operator, the key metric to consider for Domino’s Pizza is same-store-sales (SSS) growth. Growing same-store-sales are ultimately how a restaurant business increases earnings from its existing assets. The company continues to impress in this criterion with SSS having grown in the U.S. for 40 consecutive quarters, and an astounding 109 straight quarters internationally.

Two-thirds of the company’s stores are currently abroad, and the international segment remains the company’s largest growth opportunity, as the penetration of convenient fast food remains lower abroad than in the United States. Pizza is a product with exceptionally high gross margins, one that “translates” well across different cultures, and one that literally “travels well”, not losing much of its appeal when delivered in a cardboard box. The rise of 3rd party delivery platforms such as Uber Eats, Doordash and Grubhub is challenging the pizza category as it has expanded the number of choices consumers have for convenient takeout. However, the economics of food delivery remain challenging for most restaurants and platforms alike25, while pizza delivery continues to be highly profitable. Regardless of how the “delivery wars” currently playing out end, Domino’s financial results show little impact of this increased competition, and the company continues to deliver exceptional financial performance…” (Click here to read the full text)