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Domino’s Deep-Dive

Thomas Chua by Thomas Chua
July 25, 2024
in Investing
Reading Time: 11 mins read

There’s little in the world as addictive as simple carbohydrates, and rarer still is a company as capital efficient as Domino's Pizza. In fact, Domino’s might be the most capital efficient company—owning minimal tangible assets, they don’t even need shareholder capital to grow. Their return on invested capital (ROIC) has consistently outperformed the best in class businesses like Visa, Adobe, Microsoft and Meta by a wide margin.

Source: Finchat (get a 15% discount using this link) The secret sauce to Domino’s incredible ROIC lies in their franchise model. They generate the bu...

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