– Domino’s Pizza – delivery/takeout franchisor in the UK with a 48% market share.
– Defensive, high-quality compounder with asset-light business model at 12x fwd PE.
– EV just declined below Mar’20 COVID low.
– “Baby out with the bathwater” situation due to manic selling in the European markets this year and UK’s weak macro outlook.
– Set to benefit from consumers “trading down” – hard to beat Domino’s on price/value.
– DOM trades at sub-12x ’22 PE excluding non-core assets.
– DOM shares are worth at least £3/share at 16x PE providing a 20% margin of safety from current pricing.
Exp. gain: mid-teens IRR over the next 5 years
Full DOM.L write-up (free guest account required):