Domino’s Pizza’s share price will heat up again – here's how to play it

Investors have lost their appetite for Domino’s Pizza chain, but the shares are cheap, says Matthew Partridge.

Dominos Pizza employees with skateboards
Domino’s is known for its speedy deliveries
(Image credit: © Domino’s)

With the exception of China, most of the world has returned to something approaching the old pre-Covid normal. While this is cause for celebration, some of the companies that have flourished during the pandemic have seen their share prices deflate.

Domino’s Pizza Group (LSE: DOM), the UK master franchise of the US takeaway pizza chain Domino’s Pizza, is a good example. The shares went up by almost 30% in the 19 months from January 2020 to July 2021, as people switched from eating out to staying in. It then saw another near-30% leap in a matter of weeks at the end of last year, when it looked as if yet another lockdown might be on the cards. However, after hitting a peak of 473p at the end of the year, it has since lost a quarter of its value.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri