We think shares of Domino’s Pizza (DPZ) look overvalued at their current price level, especially after the company reported a same-store sales decline for the last quarter. We believe it’s better to place your bets on Yum Brands (NYSE:), Papa John’s (PZZA), and Rave Restaurant Group (RAVE), which are well-positioned to capitalize on the industry tailwinds. Read on.The largest pizza restaurant chain operator, Domino’s Pizza, Inc. (DPZ), which is headquartered in Ann Arbor, Mich., boasts roughly 18,300 stores across more than 90 markets. Its shares have gained 27.4% in price over the past nine months to close yesterday’s trading session at $480.27. The stock trades at 12.5% below the 52-week high price of $548.72 that it reached on July 22, 2021. Over the last three month, the stock price also dropped 10.7%

DPZ’s revenue increased 3.1% year-over-year to $997.99 million for its fiscal third quarter, ended September 12, 2021, and its net income came in at $120.40 million, up 21.5% year-over-year. However, it saw its same-store sales drop for the first times in more than 10 years. Also, the stock trades at a premium valuation. In terms of forward EV/S, DPZ’s 4.99x is 248.2% higher than the 1.43x industry average. In addition, the stock’s 3.97x forward P/S is 226.9% higher than the 1.22x industry average. You might want to delay until you find a better price for the stock.

However, the increasing demand for pizza restaurants should be driven by the increase in consumer discretionary and the rate at which vaccines are being administered. A Business Wire report estimates that the world’s pizza market will reach $233 billion by 2023. Instead of betting on DPZ we believe that it would be smart to invest in better-positioned stocks Yum! Brands, Inc. (YUM), Papa John’s International, Inc. (PZZA), and Rave Restaurant Group, Inc. (RAVE). They have the ability to profit from industry tailwinds.

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