Analyst Note| Johannes Faul, CFA |
We maintain our fair value estimate of AUD 71 per share on narrow-moat Domino’s Pizza. The time value of money impact on our valuation model offsets a downgrade to our near-term earnings estimates. As a high growth company, Domino’s intrinsic value is mostly determined by our unchanged long-term outlook, specifically the store count and the profits generated by those stores. We still expect Domino’s to nearly double its footprint over the next decade, with close to 6,000 stores across its 10 existing jurisdictions, up from 3,227 stores as of December 2021. Management reiterated its target of 6,650 stores across its existing global footprint by fiscal 2033.