Is This Dominant Stock a Buy for Dividend Growth Investors?
Investing in businesses with well-known brands and products that are in high demand tends to work out well over the long run. This is because such companies often have at least some level of pricing power, which leads to revenue growth, earnings growth, share price growth, and last but not least dividend growth.
As the leading pizza franchise on the planet, Domino's Pizza (NYSE: DPZ) is an illustrious restaurant company selling popular products to its customers. But does that make the stock a buy? Let's chew on Domino's business fundamentals and valuation to see if the company could be delectable to dividend growth investors.
Catering to one million-plus customers each day in dozens of countries at over 20,000 stores as of March 26, Domino's earns the distinction of being the undisputed leader of the pizza restaurant industry. For context, the company is about four-fold bigger in total restaurant count than the 5,000 locations of its most formidable competitor, Papa John's (NASDAQ: PZZA).
Source Fool.com
