Bill Ackman Comments on Domino's Pizza

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Aug 23, 2022
Summary
  • An exited position.
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Domino’s Pizza (

DPZ, Financial) (“DPZ”)

Since our last update, Domino’s near-term business performance has shown meaningful improvement, including three-year stacked growth for the second quarter of 17% in the U.S., up 560 basis points sequentially. This improvement was driven by the full impact of its recent pricing actions, operational changes leading to improved staffing and labor utilization, and the return of its signature Boost Week promotion. These positive developments caused a significant recovery in Domino’s share price and its valuation increased to more than 28 times our estimate of next twelve months’ earnings.

In light of the company’s relatively high valuation in the context of a volatile market environment, we decided to exit our investment to raise cash for alternative investment opportunities.

We have enormous respect for Domino’s and its management team led by Russell Weiner, and we expect the company to continue its long track record of success.

From

Bill Ackman (Trades, Portfolio)'s Pershing Square semiannual 2022 letter.

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Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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