Investors Rejoice: Domino’s Pizza Enterprises Earns a 23% Return on Equity!
May 31, 2023
☀️Trending News
Investors are rejoicing at the news of Domino’s Pizza Enterprises ($ASX:DMP) Limited’s 23% return on equity! This impressive return highlights the strong financial performance of the Australian-based company and makes it a great choice for investors. Domino’s Pizza Enterprises is one of the leading pizza companies in Australia, New Zealand, and Europe. It is part of the larger Domino’s Pizza Inc. chain and holds exclusive rights to own, operate and franchise stores in the three regions. This impressive return on equity is indicative of strong performance from Domino’s Pizza Enterprises. It shows that the company has been able to generate a healthy profit margin and is able to reinvest a significant amount of its earnings back into the business.
This bodes well for the future of Domino’s Pizza Enterprises and its investors. Furthermore, the company’s impressive return on equity will attract more investors, thus driving up the stock price. Its impressive 23% return on equity reflects the company’s sound financial position and its ability to grow and expand. Investors should definitely take advantage of this opportunity to add Domino’s Pizza Enterprises Limited to their portfolio.
Analysis
At GoodWhale, we believe that analyzing the fundamentals of your investments is fundamental to making well-informed decisions. That’s why we have analyzed DOMINO’S PIZZA ENTERPRISES and come up with a Risk Rating which tells us that it is a relatively low risk investment. We have also detected 1 risk warning in the balance sheet that might be of interest to you. Register on our website to check out what the risk warning is and gain access to more information about DOMINO’S PIZZA ENTERPRISES. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for DMP. More…
| Total Revenues | Net Income | Net Margin |
| 2.23k | 133.48 | 5.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for DMP. More…
| Operations | Investing | Financing |
| 206.44 | -355.72 | 189.89 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for DMP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.95k | 2.35k | 6.78 |
Key Ratios Snapshot
Some of the financial key ratios for DMP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.9% | 2.8% | 9.5% |
| FCF Margin | ROE | ROA |
| 1.2% | 25.8% | 4.5% |
Peers
It has over 2,000 stores across Australia, New Zealand, France, Belgium, the Netherlands, Japan, and Germany. The company is the largest pizza chain in Australia and New Zealand, and the second-largest in Japan. Its competitors include Restaurant Brands NZ Ltd, Ginza Renoir Co Ltd, and Pepper Food Service Co Ltd.
– Restaurant Brands NZ Ltd ($NZSE:RBD)
Restaurant Brands NZ Ltd is a quick service restaurant company. The company has a market cap of 906.99 million as of 2022 and a return on equity of 11.24%. The company operates in New Zealand and Australia. The company was founded in 1987 and is headquartered in Auckland, New Zealand.
– Ginza Renoir Co Ltd ($TSE:9853)
Ginza Renoir Co Ltd is a Japanese company that manufactures and sells women’s clothing and accessories. The company has a market cap of 5.08B as of 2022 and a Return on Equity of 6.52%. Ginza Renoir’s products are sold in department stores and boutiques in Japan and overseas. The company’s main competitors are Uniqlo and H&M.
– Pepper Food Service Co Ltd ($TSE:3053)
Pepper Food Service Co Ltd is a Japanese food service company with a market cap of 8.99B as of 2022. The company has a Return on Equity of -4.06%. The company operates in the food service industry and provides catering services to businesses and individuals. The company also provides food products and services to other food service companies.
Summary
Domino’s Pizza Enterprises Limited (DPE) has demonstrated strong returns on equity (ROE) of 23% in recent years. This is an indication of the profitability and efficiency of the company. Analyzing key financial metrics such as sales, profits, and operating margins can give investors an idea of how well the company is doing. An analysis of the balance sheet and cash flow statement can also provide insight into the company’s cash management and debt levels.
Additionally, investors should review the company’s competitive environment, product mix, and pricing strategy to understand the prospects for future growth. In summary, DPE’s strong ROE is encouraging for investors; however, a more thorough examination of the company’s fundamentals should be done to assess the long-term viability of investing in DPE.
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