Domino’s Pizza, Inc. (DPZ) A “Perfect Storm”?

Domino’s Pizza, Inc. (DPZ) new short report is out from the famed research firm, GeoInvesting. The firm prepared the DPZ thesis in late April for submission to the Sohn Conf, where we were chosen as a finalist.

In short – They believe DPZ, which has been on a tear over the last several years, could be reaching its inevitable end and that a “perfect storm” of factors could cause the stock to fall as much as 34% just to recalibrate with its peers. Domino’s is an overvalued and leveraged company in a high flying sector of a market that is near an all-time high. With a free cash flow (“FCF”) yield of just 2.6%, DPZ generated just $128 million in levered FCF during...