Some advice - Dominos Pizza

Hey folks,

Just posting a question as i’m interested to see what the community opinion would be on which I should go for shares wise in Dominos? US or UK?

People on this forum tend to have good varied opinions and advice and im just curious as ive done my homework on this but am still not sure which would be the better to go with?

All views, advice I gladly welcome! thanks :+1:

If you’re buying UK Dominos then please please make sure you have a voucher otherwise you’ll be paying twice as much as everyone else for a pizza that’s not as good as your local independent takeaway anyway. :stuck_out_tongue:

Surely no one pays full price for Dominos do they?

By the way, here’s a great video on Dominos - “we’re not a pizza company, we’re an IT company that sells pizza” - How Domino's Is Winning The Pizza Wars - YouTube

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It’s not an either/or question. It could be both. It depends what you want to invest in.

DOM is a master franchise and overseas operations in the UK, Ireland, the Nordic countries, Switzerland, and a stake in German Domino’s. The Nordic market has been a bit of a disaster though, but they’re selling those parts, so it should be a more stable business once that’s fully finished since the UK and Ireland part does really well.

DOM pays fees to DPZ (around 3% of revenue), so buying DPZ indirectly gets you exposure to DOM, albeit tiny. But there’s also the currency risk with buying DPZ, and also the risk of other markets dragging down performance: DOM’s largest master franchise is India, and the US market is very competitive.

So the question is where do you see growth in Domino’s. In the UK, Ireland, Germany, or in the US and other countries? It could even be both.

DPZ’s growth has been really good historically: since 2010 it’s outgrown the big tech names by a significant margin. Meanwhile DOM has a larger dividend yield.

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Definately good points made here. Totally agree that if you get DPZ you essentially are getting a slice “pun intended” of DOM, so would make sense to get DPZ. However as you also pointed out DOM tends to give out better Dividends yield and since its UK currency I wont get stung with the US 15% tax.

Ive read that within UK Dominos has been doing well and thoughout this whole Covid mess, it seems to have survived pretty well as take out food was not hit as badly for some like those in the restaurants.

Suppose it boils down to the price of the shares vs payout - DPZ is not cheap per share, while the DOM share prices are very cheap. I think also (I could be wrong) but Dominos stopped their dividend payouts during the whole lockdown and I havent seen any news yet when they plan to start again?