Customers are hungry for value, Domino’s says on a 1Q earnings call, including on third-party apps that tend to attract higher-income customers. Consumers are looking for special deals more than everyday low prices, executives say. The pizza giant says it intends to run a steady stream of deals this year to keep customers coming to its stores. Domino’s is up 6% in premarket trading.
Restaurant Promotions Running Hot, Domino’s Notes Read Post »
Domino’s Pizza says its foreign business remains soft this year, with international same-store sales up 0.9% compared to last year. The Middle East and Europe continue to be challenged, Domino’s says. The chain says it continues to expect to achieve a 3% international same-store sales growth this year as other global markets deliver improving results.
Domino’s Notes Ongoing Challenges Abroad Read Post »
Domino’s just introduced a New York-style pizza with a thinner crust than its traditional dough, helping to draw in a new customer, CEO Russell Weiner says in an interview. Some customers who wanted a foldable pizza slice with a different ratio of ingredients to dough are now giving Domino’s another look, he says. U.S. same-store sales increased 5.6% in 1Q.
Domino’s New Pizza Plays With Different Customers Read Post »
The following is a summary of the Domino’s Pizza, Inc. (DPZ) Q1 2024 Earnings Call Transcript: Financial Performance: Domino’s reported a global retail sales growth of 7.3%, excluding foreign currency impact. There was a 7.8% increase in U.S. retail sales, and a 6.8% growth in international retail sales, excluding foreign currency. The company’s same-store sales saw a significant increase in the U.S. by 5.6% and abroad by 0.9%, excluding foreign currency impact. New store additions included 20 in the U.S. and 144 internationally. An increase of 19.4% in operating income was noted in Q1, considering the exclusion of foreign currency’s negative impact. Business Progress: Domino’s introduced their New York Style pizza in Q1 2024 and rolled out a series of product training sprints across 6,800 plus U.S. stores. Initiatives like ‘Emergency Pizza’, Carryout Special Boost Week, and a new loyalty program, Domino’s Rewards, significantly contributed to increasing U.S. same-store sales.
Domino’s Pizza(DPZ.US) Q1 2024 Earnings Conference Read Post »
Amazon.com (AMZN) said Monday that it made a record number of same-day or next-day deliveries to Prime members during the first three months of 2024. The company said it fulfilled over two billion orders the same or next day to subscribers of its $139 per year service around the globe. “In March, nearly 60% of Prime member orders arrived the same or next day across the top 60 largest US metro areas, and we delivered three out of four items the same or next day in London, Tokyo, and Toronto,” Doug Herrington, CEO of Worldwide Amazon Stores, said in a statement Monday.
Here’s the latest fashion newsflash: younger Americans are swapping out skinny jeans for oversize, baggy pants. That could hurt companies such as Lululemon Athletica while giving a sales boost to denim-based retailers, Barclays says, as shoppers spend less on form-fitting leggings. Analyst Adrienne Yih noted that this preference is part of a broader shift in consumer silhouettes, which, unlike a short-lived fad, will dictate trend cycles for years to come. “A silhouette shift is a virtuous cycle in that it can drive not only wardrobe refresh but also multiyear new-dollar spend as the consumer adopts the entire look over several years,” she wrote in a note to clients Monday. Apparel retailers with a strong denim business, such as American Eagle Outfitters, Gap, and Urban Outfitters could be the biggest beneficiaries of the trend, Yih noted. With consumers laser-focused on buying newer, baggier styles, these retailers may start to see higher
Lululemon Stock Could Trip Because Leggings Are Out — Barrons.com Read Post »
Uber Technologies’ (UBER) Q1 revenue is expected to be slightly higher than the consensus of $10.088 billion, BofA Securities said in a Monday note. The firm said it forecasts a revenue of $10.093 billion for the ride-hailing company, which is set to release Q1 results on May 8. BofA said that the “bright spot” for the quarter is expected to be Uber’s mobility business, for which the firm anticipates “modestly accelerating” year-over-year growth on a foreign exchange-neutral basis to 29%. The firm said that based on data on mobility and the company’s historical guidance, it expects a Q2 bookings guidance range of $39.5 billion to $40.5 billion, the midpoint of which is inline with the consensus of $40 billion. BofA maintained its buy rating and $91 price objective on Uber.
Uber Q1 Revenue Expected to Slightly Exceed Consensus, BofA Says Read Post »
TD Cowen analyst Andrew Charles reiterated a Buy rating on the shares of Domino’s Pizza Inc (NYSE:DPZ) with a price target of $550. The company reported first-quarter FY24 sales growth of 6% year-on-year to $1.085 billion, beating the analyst consensus estimate of $1.079 billion. EPS of $3.58 beat the consensus estimate of $3.42. The analyst attributes the EPS beat primarily to 110 basis points of better supply chain margin vs the Cowen model ($0.20), lower interest expense ($0.05), and lower income tax ($0.16). DPC Dash (Domino’s China) investment losses from fair value adjustments weighed on the first-quarter EPS by $0.53 relative to the analyst’s $0.50 estimate. U.S. same store sales of 5.6% exceeded the analyst’s expectations, aided by positive order counts for both delivery & carry-out orders, said the analyst. Order count growth was observed across all income cohorts in a challenged restaurant spending atmosphere for lower income consumers. DPZ ended first-quarter with
Domino’s Pizza Has Displayed A Strong Start To 2024, Says Analyst Read Post »
Uber Technologies (UBER) is expected to report better-than-projected first-quarter earnings and bookings, with the company’s mobility business likely to be the “bright spot,” BofA Securities said Monday. The ride hailing company is scheduled to report first-quarter results May 8. BofA projects earnings at $0.26 per share and gross bookings at $38.27 billion, topping Wall Street’s views for $0.22 and $37.96 billion, respectively. The brokerage expects revenue of $10.09 billion, which is said would match the Street’s estimates. BofA sees mobility bookings at $19.18 billion versus the Street’s $19.14 billion view. The firm said its outlook assumes 28% growth. “We remain constructive on Uber as our top travel/transportation stock given bookings and (earnings before interest, taxes, depreciation, and amortization) growth well above peers,” BofA analysts Justin Post and Michael McGovern said in a note. “Data points for (first-quarter) mobility spend suggest accelerating trends, while restaurant may have decelerated, though Uber’s other
Uber Poised For First-Quarter Earnings, Bookings Beat, BofA Says Read Post »
The downtrend of cosmetics imports to China didn’t show any signs of improvement in the 1Q, Citigroup analyst Filippo Falorni says in a research note. China saw a 21% year-over-year decline in imports, and a 15% U.S. drop. “The continued decline of imports from the U.S. would suggest trends for Estee Lauder in Mainland China could remain sluggish for this quarter,” Falorni says. “However, we continue to believe the cycling of large inventory reductions in Korea/China travel retail could support a return to sales growth.” L’Oreal, on the other hand, can mitigate the impact of subdued China market growth and buy time until a recovery on easy comparatives in this region, Falorni adds. Citigroup’s top pick is the Chinese beauty company Proya for its strong earnings outlook at 25%-30% growth.
Drop in U.S. Cosmetic Imports To China Seen As Key To Estee Lauder’s Results Read Post »
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our 12-month target to $560 from $483, 35.3x our 2024 EPS, higher than DPZ’s five-year average forward P/E of 28.9x, reflecting DPZ’s better top- and bottom-line growth prospects due its “Hungry for M.O.R.E” strategy. We raise our 2024 EPS to $15.85 from $15.76 and 2025’s to $17.74 from $17.58. DPZ posted Q1 EPS of $3.58, $0.18 above consensus. Revenue of $1,085M (+5.9% Y/Y) was $7M above consensus. Operating income rose 18.6% Y/Y to $210M, with margin widening 210 bps to 19.4% vs. the 18.4% consensus. Same-store sales increased in the U.S. (+5.6%) and internationally (+0.9% vs. +0.2% consensus), due to order count growth across income cohorts in carryout and delivery. We note that DPZ saw the most growth among lower-income cohorts, along with its launch
CFRA Maintains Hold Opinion On Shares Of Domino’s Pizza, Inc. Read Post »
McDonald’s is set to report first-quarter earnings on Tuesday before the market opens. Despite the struggles of the fast-food industry, the Big Mac maker is likely to hold up better. Analysts polled by FactSet expect McDonald’s to post $2.72 per share earnings and $6.16 billion in sales for the first three months of 2024, marking a 3.4% and 4.4% growth from the same quarter a year ago, respectively. Inflation has taken a toll on consumer spending. Lower-income households, the primary customers of fast-food chains, are squeezed particularly hard, especially after food-stamp assistance was cut and student loan payments resumed last year. McDonald’s raised prices by 10% last year. Management noted that lower-income consumers have visited its stores less frequently and are spending less when they do. Meanwhile, price gains at grocery stores have slowed down this year. “Some of those consumers are just choosing to eat at home more often,”
McDonald’s Earnings Are Coming. Inflation May Not Be a Big Issue. — Barrons.com Read Post »