Munger Mode rating: 4 out of 5 — Buy. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have spent our lives looking for businesses that a ham sandwich could run, that gush cash, that get stronger as they get bigger, and that return every spare dollar to owners. Domino's Pizza is one of the few large American franchises that checks every one of those boxes. It is a royalty on 22,531 pizza stores in more than 90 countries, roughly 99% of them owned by somebody else's capital, feeding a toll-road stream of franchise fees, supply-chain profits, and advertising dollars. The stock has been cut roughly a third from its 52-week high of $496 to about $329, largely because U.S. same-store sales slowed to +0.1% in the quarter ended June 14, 2026 and the market has decided a slowing pizza chain deserves a teens multiple. At 18.7x trailing earnings and a ~6% free cash flow yield, we are being offered a wonderful business at a fair price, arguably a modest discount.
Recent filings analysed: 8-K (2026-07-20), 10-Q (2026-07-20), 8-K (2026-07-14), 8-K (2026-06-22).
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