Domino’s Pizza Stock Hits All-Time High in 2021, Struggles to Maintain Momentum
Domino's Pizza (DPZ) reached its peak valuation on December 31, 2021, closing at a record $564.33 per share. Investors who held the stock for five years saw returns exceeding 250%, turning a $10,000 investment into $35,000. The euphoria proved short-lived—shares have since declined 20%, underperforming the S&P 500's 30% gain over the same period.
Growth stagnation plagues the pizza giant. Revenue expanded just 8% between 2021 and 2024, with earnings per share climbing a modest 23%. Such tepid fundamentals rarely sustain market-beating returns, particularly when management forecasts single-digit revenue growth ahead. Share buybacks may lift annual EPS growth toward 10%, but that may not satisfy investors accustomed to the chain's former momentum.
