Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 3 Sept 2026
DPZ· Consumer Discretionary
Domino's Pizza
Domino's Pizza shows strong ROIC of 58.1%, but high leverage with net debt/EBITDA at 4.99 raises concerns.
Buffett fit
Partial fit
Owner
78
Durability
75
Management
70
Price
61
Score updated 26 Sept 2026 · analysis from 3 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned Domino's Pizza entirely, the focus would be on maintaining its high of 58.1% and leveraging its strong brand to sustain .
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Domino's has demonstrated consistent profitability over the last five years, with an EPS CAGR of 6.56%.
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The share count has decreased at a CAGR of -2.22% over five years, indicating effective .
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The current of 17.9 and EV/ of 16.1 suggest a fair valuation, but not a bargain.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 58.1% is top-quintile in the sector, indicating efficient capital use.
- 2 of 19.6% is well above the sector top-quintile cutoff of 14.9%.
- 3Strong brand presence with 18,800 stores in 90 markets.
- 4Share count CAGR of -2.22% reflects effective .
Concerns
5- 1Net debt/EBITDA of 4.99 indicates high .
- 2Market cap decrease versus retained earnings of -17.11% suggests value not fully realized.
- 3 of 40.1% is below the sector top-quintile of 53.9%.
- 4Interest coverage ratio of 5.0 is at the lower end of comfort.
Price history
$318-35.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Domino's Pizza operates through U.S. Stores, International Franchise, and Supply Chain segments, offering pizzas and other food items. With approximately 18,800 stores in 90 markets, the company generates revenue primarily through franchising and supply chain operations. The of 19.6% sits in the top quintile for its sector, indicating efficient operations. Unit economics are strong, with a net margin of 11.9%.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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