dp

Domino's

DPZ
NYSE
$374.61

Does Domino's have a strong competitive moat?

Intangible assets and brand: The brand’s share of mind is reinforced by 6 percent national ad contributions and a digital ecosystem that generated more than 85 percent of U.S. retail sales in 2024, supporting consistent customer acquisition and frequency.

Score 90. Switching costs: End-customer switching costs are low in QSR pizza, though franchisee switching is constrained by contracts and embedded store systems.

Score 40. Network effects: Marketplace listings (Uber Eats and DoorDash) expand demand-side access while Domino’s keeps delivery in-house, creating a distribution-layer network effect without ceding last-mile control.

Score 60. Cost advantages: Centralized dough and ingredient procurement with U.S. supply chain centers, route density, and national media buying provide scale economies that smaller rivals cannot replicate.

Score 85. Efficient scale: Dense U.S. store network and strong franchisee unit economics deter new entrants at scale and compress local delivery times.

Global stores reached ~21,750 as of Sept. 7, 2025. Score 80. Weighted view: Heaviest weight on cost advantages and efficient scale yields a high moat score with acknowledgment that consumer switching remains easy.