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 $483 from $370, 30.6x our 2024 EPS estimate, above DPZ’s five-year average forward P/E of 28.8x, reflecting better revenue growth prospects. We raise our 2024 EPS to $15.76 from $15.69 and set 2025’s at $17.58. DPZ posted Q4 EPS of $4.48 (+1.1% Y/Y), $0.08 above consensus. Revenue of $1,403M (+0.8% Y/Y) was $18M below consensus. Operating income increased 3.4% Y/Y to $257M vs. the $253M consensus, with margin widening 46 bps Y/Y to 18.3%. Same-store sales rose in the U.S. by 2.8%, but only increased 0.1% (ex-FX) internationally vs. the 3.3% consensus. In the U.S., DPZ saw growth in both carry-out and delivery transactions, while international closures, mainly in Russia and Brazil, weighed on revenue. DPZ also raised its dividend by 25% and its buyback authorization by $1B. While we’re positive on DPZ’s promotions, loyalty program relaunch (+2M members Q/Q), and planned investments, we now view the risk/reward as unfavorable with shares trading above their historical average.