quick look at the stock price of Domino's Pizza reveals it hasn't moved much in 5 years! If we even include the dividends during that period, the total return of Domino's Pizza stock is only 10%.
So, when we compare these returns from Domino's Pizza with the inflation, it becomes clear that it was a disappointing investment.
But what's surprising is that Domino's Pizza has modernized its brand and expanded its footprint during the same period. So, does this mean the Domino's Pizza stock is a buy since it has a strong business? To answer it, we must take a closer look at Domino's Pizza's business.
Domino's Pizza started this year on a softer note but turned things around in the 2nd quarter. This was supported by steady international growth and improved delivery metrics. Just like that, Domino's Pizza has closed the rest of the year on a stronger note.
During Q2 of 2025, the same-store sales of Domino's Pizza jumped by 3.4%. Meanwhile, the data from the international market showed a 2.4% increase.
Also, Domino's Pizza's total revenue reached $1.15 billion with a 4.3% increase. On top of that, the company also earned from supply chain throughput and royalties from franchises.
But despite having a strong business, the Domino's Pizza stock doesn't look attractive at all. The P/E ratio of Domino's Pizza is only 25, which is in line with its historic value.
So for those who are willing to take the risk, it could be worth looking into Domino's Pizza stock. But, it should be remembered that there's a good chance that Domino's Pizza stock might continue the same performance in the next 4-5 years too!
But if the Domino's Pizza stock catches up with performance in real time, then you could be looking at great returns. The bottom line is that investing in Domino's Pizza stock comes with a risk, but an equal reward, too.