Domino's Pizza is a high-quality company with significant growth potential. Recent declines in same-store sales growth and a slowdown in store openings may overshadow the vast opportunities within its global network. Our earnings growth forecast primarily relies on franchisees launching new stores. The profitability of franchise locations and the demand for new stores are closely linked to same-store sales growth, which we anticipate will rebound starting in fiscal 2026, alongside a broader recovery in the fast-food sector. We project a 20% compound annual growth rate in earnings over the next five years. Additionally, we expect to receive an update on the company's long-term plans during its strategy day in the first half of fiscal 2026, which should alleviate some of the uncertainty surrounding the stock.
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