Value investment analysis in quick-service restaurant industry in the US: A case study of Domino’s Pizza

Value investing is a strategy to gain profit from stocks that are undervalued by the market. This approach has been proven sensible and profitable in today’s financial markets. Famous investors such as Warren Buffett have shown that a careful analysis of intrinsic value can lead to substantial returns. This paper applies the theoretical framework of value investment to discuss the future investment value of Domino’s Pizza and to examine the risks and benefits of investing in this company. The study examines Domino’s profit model, its core competitiveness, and its stock valuation using financial performance indicators. The analysis shows that Domino’s Pizza is positioned as a high-reward opportunity in the fast-food industry. The company’s successful expansion through digital transformation and innovative delivery services has driven its international growth. The study also evaluates key financial statements and ratios to assess the intrinsic value of the firm. The findings indicate that if Domino’s maintains its competitive advantages and continues its expansion strategy, its long-term growth potential will attract value investors. Overall, this research contributes to the literature on value investing by reviewing both theoretical aspects and a practical case study of a leading quick-service restaurant chain.