International equities fund managers, Insync, notes that Dominos has only fallen 10% in share price compared to the benchmark index, MSCI ACWI which is down 31%. The MSCI All Country World Index is a useful benchmark for comparing performance of international equity funds.
“Even before COVID-19, Dominos has been growing in market support. Even before the virus hit and people ordered in more pizza, female participation in the workforce has risen steadily. This meant that TIME HAS BECOME MORE VALUABLE to the household, such that demand for home- delivered food was rising.
“It is a fact that in the US, since 2012, the value of food consumed by households that was prepared away from home has exceeded that of food prepared at home,” said John Lobb, Portfolio Manager, Insync Funds Management.
Dominos invented home delivery, so delivery is “baked-in” to menu prices, and hiring its own delivery drivers has service, quality and cost advantages. The fragmented business models/networks of many of its competitors won’t keep Millennials ordering.
“Our investment philosophy revolves around high quality companies. We look for companies that are benefiting from disruption, have long runways of growth through exposure to global megatrends and are highly profitable,” commented Mr. Lobb.
For information on where Insync is seeing better offshore investment results visit https://www.insyncfm.com.au/
Mr John Lobb
Portfolio Manager
Insync Funds Management
02 8094 1255
0428 810 009
jlobb@insyncfm.com.au
www.insyncfm.com.au