It's fascinating to think about how some of the world's most successful companies deal in some of the most simple industries. Take restaurant chain Domino's Pizza (DPZ -1.54%). Pizza is one of the most popular food categories on Earth with endless competition, yet a $10,000 investment in Domino's IPO in 2004 would be worth more than $650,000 today on a total return basis.

A winning stock like that can change your life and help you retire rich. Domino's is a more prominent company today than it was back then, so it might take a more significant investment and patience to realize big returns moving forward. However, the ingredients are still there for Domino's to carry your portfolio higher in the years ahead.

Domino's winning recipe

People love pizza, and as I noted above, almost anyone can make it! There are more than 75,000 pizzerias in the United States, and many of them are local shops, the mom-and-pop locations found in neighborhoods across the country. But because almost anyone can open a pizza place, it's a highly fragmented industry, which plays into the hands of a company like Domino's.

Image source: Getty Images.

Domino's specializes in low-priced and convenient pizza. You can access the company's smartphone app, order whatever you need, pay for it, and have it delivered or ready for pickup in just a few minutes. The combination of convenience and a massive store base have helped it grab an estimated 22% of the U.S. quick-service pizza market.

The company uses a franchise business model, where operators can open Domino's-branded stores in exchange for a franchise fee and a royalty on sales. This keeps Domino's business asset-light, because it doesn't have to pay overhead or labor to operate its own restaurants.

A formula for growth

A restaurant chain isn't likely to have explosive growth, but Domino's has a winning formula to drive consistent, steady expansion. The company has grown its store count from 10,255 in 2012 to 18,380 as of the third quarter of 2021, 98% of which are franchised.

Domino's has a global operation with more stores in international markets (11,909) than in the United States (6,471). The company has its sights set on aggressive international expansion in emerging markets like China, India, and Mexico. Management believes the opportunity exists for more than 10,000 additional international locations and over 1,000 additional stores in the U.S.

The company has added 1,124 stores over the trailing 12 months, or 6% of its total store count, so holding this pace will drive solid revenue growth on its own, not even factoring in same-store sales growth. Domino's U.S. same-store sales have averaged 4.1% annual growth since 2000, and international stores have averaged 5.6% growth over the same time frame. The company's blended revenue growth has averaged 10% annually for the past decade.

Strong financials supercharge returns

Steady 10% revenue growth is impressive in its own right, but there's more to this story. The company is also generating more free cash flow over time.

Data by YCharts.

Domino's doesn't need all of this cash because of its franchising business model, so it returns a lot of it to investors. The company pays a dividend, and while it yields just 0.9% as of this writing, management has increased it annually for the past nine years.

The company also aggressively buys back its stock, decreasing shares outstanding to grow earnings per share (EPS). Domino's annual EPS growth has averaged above 20% over the past decade, which helps explain its incredible returns for investors. As the company grows, it produces more cash flow and buys more shares -- rinse and repeat.

Can it continue?

I don't see why Domino's can't continue delivering strong total returns for investors. The company plans to expand its store count over the coming years and has the opportunity to grab more market share with fragmented competitors still making up over 50% of the total market.

Domino's has proven to be a formidable player in the restaurant industry, but the company still has a relatively conservative market cap of just under $16 billion. It's much smaller than other restaurant giants like McDonald's or Starbucks. Domino's might never reach quite that size, but it can still generate a lot of wealth for shareholders moving forward, making it a stock investors should consider grabbing a slice of.