Domino's Consistently, Yes, Delivers

 | Apr 30, 2013 | 7:34 PM EDT  | Comments
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Stock quotes in this article:

dpz

,

bwld

,

mcd

,

sbux

What does Pat Doyle have to do to get people to understand that Domino's Pizza (DPZ)  is a growth company? While everyone is out shooting and clubbing each other over every tick of Buffalo Wild Wings (BWLD), every data point of Starbucks (SBUX), or every monthly same store sales number from McDonald's (MCD) , Domino's just consistently, yes, delivers.

It has been putting up amazing numbers for four years now. It's growing at a faster pace internationally than any of the majors, including Starbucks. It has plans to double the number of stores in Europe and can add a huge number in Asia and because it is a franchise model they make a ton of money every time someone opens a shop.

The only constraint on the stock is if there is enough credit for people to open stores -- there isn't right now, at least in this country.

Here's a company that paid a special $3 dividend 13 months ago and has enough money on hand to do it again and have plenty of cushion with the ratings agencies. It can boost its regular dividend. It can buy back a ton of stock. And yet it is only a $3 billion company.

That makes no sense to me.

Seems to make no sense to anyone else, either, because once again, it beat and raised big and I sense that even as analysts quibble that its earnings may have been inflated by a calendar change, it's the international growth that matters, and if anything, that's just scratching the surface.

Domino's, even at 23 times earnings represent value because it's the market capitalization that needs to change; it's just too small versus the opportunity.

One day it won't be, but it certainly won't be at this level. It will be higher. Maybe much higher.

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