Software Eats World But People Eat Domino's Pizza

Without checking, make a guess which stock delivered a higher return in the last 10 years?

Is it Alphabet or Domino's Pizza?

Most would probably guess Alphabet, considering its status as one of the "Magnificent 7" companies and its market capitalization surpassing one trillion dollars.

Nonetheless, the actual returns tell a different story. Over the past 10 years, an investor would have enjoyed greater returns from Domino's Pizza compared to Alphabet stock, with the former providing a total return of 482% versus the latter's 387%.

It's important to note that this isn't meant to diminish Alphabet's performance, as a 387% return over the past decade is quite remarkable, translating to an annual return of 17% and outperforming the S&P 500.

The intriguing question here is how Domino's Pizza stock has managed to excel. The pizza industry is considered mature with slow growth, and it faces fierce competition, given the abundance of food options available today.