Dominos Pizza Stock Pitch March 21, 2016

Dominos Pizza Founded in 1960 in Ann Arbor, MI Owns, operates, franchises restaurant chain and pizza delivery chain globally CEO: J. Patrick Doyle Revenue sources: Restaurant operations, franchise fees, fresh dough and other product operations Introduction Introduce the company you are pitching: what do they produce, who is their management (experienced?, vision), what are their main revenue sources, suppliers and consumers (supplier power, consumer power).

Domino’s Pizza Financials Company’s stock chart You can mention: Current price How has the stock performed over the past year (be ready to explain major fluctuations in the stock price) 52 week high/low Beta of the stock Current price: $131.17 52-week high: $136.33 , 52-week low: $98.01 Beta: 0.64

Investment Thesis Industry leader in sales growth Expanding domestically and abroad Supply-chain revenue model insulates it from higher commodity prices Revenue growth, strong cash-flow Solid financial position with justified debt levels Investment Thesis: Why are you bullish on this stock? How is your view differentiated from the market? Provide few reasons for why the company will perform well in the future? Google what a good investment thesis incorporates. Can be in sentences /bullet points

Domino’s is the industry leader in an already fast growing market segrment Use the next slide/slides to support your investment thesis.

Domino’s is taking advantage of lower gas prices and food poisoning concerns Fast-food chains…often located near gasoline stations -- are getting the biggest benefit from lower prices, because they cater to lower-income customers who are seeing a bigger change in their monthly budgets and are more likely to spend their spare change. “It is the lower-income groups who are eating out more frequently and pushing the sales in those categories” – Darren Tristano, Technomic, Inc. Source: Company website

Robust online and mobile infrastructure is positioned to make it a millennial favorite Rollout of push-button ordering, including ordering by tweeting the pizza emoji to Domino’s account The reason Doyle [Domino’s CEO] considers it an e-commerce site is because half of Domino’s sales are now digital. – Marketplace.org

Impressive EPS growth

Total industry spending has held steady, and Domino’s still has room to grow

Valuation Last quarter EPS * 4 * P/E = Target price ($1.18)(4)($38.02)=$179.45

Threats to Domino’s Pizza in the future Concerns about valuation Challenges to continued international expansion Rising labor and technology costs Highly levered capital structure Threats Outline some threats of why your investment thesis might not hold true. Competition? Earnings from abroad (be considerate about appreciating dollar) Legal (very large market share?) Bad product development? High supplier power?

Conclusion Domino’s is currently undervalued at $131/share; this analysis values it at $170/share I recommend DPZ shares with a Buy rating and 12- month price target of $155 which implies 18% upside to the current share price Long-term earnings growth is crucial Conclusion Sum up your investment thesis Mention target buy and sell prices Be ready to answer questions