We Expect Market Share Gains to Emulate From Domino's Emphasis on Carryout and Fortressing

With an 85% digital sales mix, a strong loyalty program, and a quickly growing carryout business, Domino's strikes us as well positioned to navigate a turbulent industry environment. The firm boasts just north of 20% market share in the global quick-service pizza industry (Euromonitor) and has been a net share gainer over the past five years. While we expect a challenging couple of quarters, with evidence of consumer trade-down and declining industrywide traffic, we view the firm's long-term focus on defending franchisee profits, supporting its growing carryout business, strengthening its tech infrastructure, and building store density at the market level as prudent.