We initiate coverage of Domino’s with a HOLD rating. Domino’s Pizza is the world’s largest pizza chain. In the world of quick service restaurants, it is distinguished by i) it’s delivery/eat-out-first model and ii) the cheapness of its offering. For a long time, the leading pizza chain in the world was Pizza Hut. Pizza Hut was an eat-in concept. Delivery was secondary. Dominos made delivery primary and benefitted from cheaper store fit-outs (no dine-in floorspace, practically) and a pre-Uber Eats shift in consumer preferences to delivered food. Like its competitors Dominos largely franchises out, collecting a franchise fee and acting as the largest supplier to its stores (dough, cheese, toppings, etc). The delivery-forward model has faced some challenges as of late, as fuel prices and staff shortages eat into franchisee’s razor-thin margins.