Domino's Cost Edge and Digital Prowess Should Drive Continued Pizza Market Share Gains

Domino’s Pizza looks ready to capture a larger slice of the market against a challenging restaurant backdrop, as consumers gravitate toward its compelling value-oriented menu. Domino’s position is aided by a focus on bolstering technology and convenience that boosts consumer attachment and supports value pricing while defending robust unit economics. This is reinforced by menu innovation and a marketing cadence that smaller peers struggle to match. Paired with a strong international franchisee base, this strategy has driven 7.2% constant-currency system and 3.2% comparable sales growth on average over the past seven years, outpacing our 2.3% estimate for broader global foodservice. As many competing chains have succumbed to the pizza vertical's competitive intensity and shuttered units, we don't expect Domino's to ease up on investing behind its brand and expanding its footprint. As such, we expect roughly 6.1% system growth versus 4.5% for the industry over the next five years.