Dollarama Inc.
Thesis
We recommend a long position in Dollarama due to its potential for significant growth through store expansion and operational improvements, including adopting zone pricing and optimizing its logistics network. The proposed strategies could lead to a target price of C$81, representing an attractive risk/reward profile with a potential IRR of 11%.
Did it work?
The long thesis in Dollarama decisively played out: the stock returned +162.7% over 88 months (~14% annualized), exceeding the pitch's stated 11% IRR and implying the C$81 target price was surpassed. The cited growth drivers — store expansion and operational improvements such as zone pricing and logistics optimization — materialized as the company sustained strong comp growth and margin expansion. With the stated horizon long since elapsed and returns well above the thesis's own hurdle, this is a clear success.