Domino’s Pizza (NYSE:DPZ)’s 3Q Fundamentals Look Weak Despite EPS Beat

Domino’s Pizza (NYSE:DPZ)’s posted 3Q earnings of $4.18 a share, soaring past the consensus estimate of $3.31 a share from analysts surveyed by FactSet, but the pizza chain’s fundamentals otherwise looked weaker than expected, Wells Fargo analysts say in a research note. There are some positive catalysts on the horizon, but the company’s year-to-date results have underperformed, the analysts say. US same-store sales declined slightly in 3Q while total revenue fell to $1.03 billion, below analyst forecasts. “While Q3 was downplayed from the start, today’s QSR backdrop is delicate, shares are crowded and softer ’23 sales/units aren’t helping the cause,” the analysts say.

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