Jun. 25 at 3:54 AM
Why has Domino's
$DPZ
, once a Wall Street darling, fundamentals and share price declined over the past 5 years?
Simple supply/demand equation
The supply of ready to eat meal delivery options pre-2020 were minimal. Dominos was the leader.
The supply today is multi-fold with
$DASH
,
$UBER
, and GrubHub mainstream, making delivery possible for virtually every restaurant.
Domino's is not a stock I would own today. Delivery services are aggressively marketed, and the market share of Domino's Pizza vs all take-out food eaten at home will continue to decline.
Looking back, investors should have seen this change in supply & delivery competition coming and sold out before the competition became ubiquitous.
