Dominos Pizza (DPZ) Stock

Food-service stocks are not often considered essential investments. This is because the industry does not experience rapid growth and is also very competitive with low profit margins.

Domino's Pizza (DPZ -0.71%) is well-known among customers, but it hasn't always been popular with investors.

Domino's emphasis on the Hungry for MORE strategy, advancements in digital technology, and consistent growth in store openings creates a solid base for the company.

Companies can give back to their shareholders by sharing part of their profits as dividends, which many investors appreciate. If you're looking for appealing dividend stocks to invest in, you might want to check out Domino's Pizza (DPZ -2.20%), as it has increased its dividends for twelve consecutive years.

Last month, Domino's (DPZ -2.20%) stock caught the attention of many investors when Warren Buffett's Berkshire Hathaway revealed that it had invested in the pizza company. When Buffett buys a stock, it often attracts a lot of interest, which can lead to an increase in the share price.

Domino's Pizza Group is growing by acquiring companies, such as Shorecal Limited in Ireland and a small share in DP Poland, focusing on markets that have not been fully explored. Although the UK quick-service restaurant market is growing slowly, DPG's franchise profits are getting better, with store-level EBITDA margins reaching 14% in the first half of 2024. Their financial results indicate steady overall sales, but corporate revenues have dropped because of lower commissary earnings, while maintaining a manageable Debt/EBITDA ratio of 2.56x.

When billionaire investor Warren Buffett shows confidence in a stock, it usually encourages other retail investors to invest in it too. Recently, it was revealed that he added Domino's Pizza (DPZ 1.65%) to his portfolio, and as expected, the stock price has increased since that news.

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