Domino’s Pizza (DPZ -0.60%) may be best known for late-night delivery, but for investors it represents something bigger. One of the most durable growth stories in the restaurant industry. Over the past two decades, Domino’s has outpaced the S&P 500, delivering close to 3,000% in stock return to investors.

Now, with more than 21,000 stores worldwide, the question is what keeps Domino’s compounding from here. The answer lies in three powerful forces: International expansion, digital leadership, and menu innovation.

Image source: Getty Images.

1. International expansion, and particularly China

One of the biggest issues with Domino’s is the sheer size of its U.S. store count (7,031 as of March 23), which limits its future growth potential. While the bears are not wrong in saying that, they are missing the bigger picture, wherein the real growth engine is from overseas. For perspective, Domino’s now operates more international stores than domestic ones, and global markets (with more than 14,000 stores) are providing both scale and profitability.

The most significant growth opportunity here is China. Domino’s master franchisee there, DPC Dash, ended June 2025 with about 1,198 stores across 48 Chinese cities. Same-store sales have grown for more than 30 straight quarters, and management expects to add about 300 stores in 2025 and 350 more in 2026. It also has 30 million customers on its loyalty program there, up from 19 million a year ago.

Importantly, DPC’s growing scale is translating into profitability. In the first half of 2025,  Domino’s China generated $362.7 million in revenue and a fivefold increase in net profit year over year, with adjusted EBITDA margins climbing to 12.4%. Those numbers highlight a rare combination: Rapid revenue growth alongside improving margins.

While impressive, the growth in China is likely to be in the early days. With a population of 1.4 billion, the country can certainly accommodate many more thousands of stores. For investors, that’s a blueprint that could extend to other emerging markets as Domino’s replicates the model in emerging markets like India or Southeast Asia.

2. Ongoing investment in digital and technology

Domino’s has long differentiated itself through technology. It was one of the first pizza chains to roll out mobile ordering, and today, digital accounts for a large share of its sales base. In the U.S., more than 85% of sales now come through digital channels.

That’s more than just a convenience metric. Digital orders typically carry higher average tickets and lower error rates, and foster customer loyalty through push notifications and rewards. By steering customers to its own app, Domino’s also collects valuable data, enabling upselling and targeted marketing.

The company is also partnering with other tech companies. Its DoorDash deal, announced in May 2025, allows Domino’s stores to appear on DoorDash’s marketplace while still using Domino’s drivers for fulfillment. This hybrid model expands customer reach without compromising the delivery experience for customers.

Looking ahead, Domino’s ongoing investment in the latest technology and innovations could further enhance the customer experience while making its operation leaner and better. Both will add to the bottom line over the long run.

3. Menu and value innovation

People crave variety, even in a category as simple as pizza. Domino’s continually updates its menu with new toppings, sides, and limited-time offers that encourage repeat visits from loyal customers while attracting new demographics.

Internationally, Domino’s adapts to local tastes — paneer pizzas in India, durian pizzas in China — to ensure cultural relevance while still leveraging its global brand. That balance of localization and consistency is a significant strength as it expands into new markets.

Value remains just as crucial as novelty. Domino’s has consistently positioned itself as an affordable option in quick-service dining, offering carryout deals, bundles, and promotional pricing that appeal to price-sensitive consumers. This approach has helped Domino’s not only sustain demand through economic cycles, but also gain market share during more challenging times.

The combination of menu variety and value pricing has cemented Domino’s position as the largest pizza chain in the world, and it gives the company multiple levers to drive growth even when broader consumer spending slows.

What does it mean for investors?

Domino’s isn’t just a restaurant chain anymore — it’s a global platform powered by scale, technology, and relentless customer focus.

International expansion, particularly in China, offers a long runway for store growth. Its digital leadership strengthens customer loyalty and operational efficiency. And menu and value innovation keep the brand relevant and affordable across markets.

That’s why, even after two decades of outperformance, Domino’s story may just be getting started. Investors should keep the company on their radar.