Domino's Pizza Group: Shares Remain Cheap Amid Ongoing Macro Woes

Mark Dockray2.22K FollowersFollow5ShareSavePlay(8min)CommentsSummaryI continue to rate Domino's Pizza Group plc "Strong Buy", with its price-to-earnings valuation and dividend yield both at historically attractive levels.Amid ongoing macro headwinds, system sales rose 1.5% last year. Volume growth was negative, though, and this is a bigger driver of the firm's earnings.Declining store-level profitability has weighed on store count growth, though unit economics remain robust, which should power expansion in the long run.On the plus side, Domino's continues to gain market share, implying that its problems are cyclical rather than brand-specific.StephenBridger/iStock Editorial via Getty Images The hits keep on coming for Domino's Pizza Group plc (DPUKY) (DMPZF) ('DPG' hereafter). Cost inflation and weak consumer demand were already headwinds for the firm even before the outbreak of war in theThis article was written byMark Dockray2.22K FollowersFollowI like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'.Analyst’s Disclosure: I/we have a beneficial long position in the shares of DPUKY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.