Does the popular fast food chain Domino's Pizza have a bright future?
According to many voices, a recession is coming. And in such a period, this particular food-related industry tends to be in the limelight because of its resilience. Does this mean the fast food chain will be overpriced because everyone knows it, or is it a hidden treasure?
While the global restaurant industry was hit hard during the pandemic, Domino's Pizza $DPZ, which focuses on delivery and delivery, has been able to maintain a steady growth trajectory. But could that change now?
Over the past decade, Domino's has seen very strong share price growth that has outperformed both the broader market and the sector, thanks to a fast and aggressive business. Over this period, the share price has risen 670%. After a record year in 2021, Domino's experienced a large decline in 2022, limiting its overall five-year growth to "just" 67%.
However, over the past year, it has posted a 19% loss. That's already pretty painful compared to the Consumer Goods sector's loss of…