DPZ

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.

We cut our 12-month target price to $370 from $445, 23.6x our 2024 EPS estimate, a discount to DPZ’s five-year average forward P/E of 30.3x, justified by continued softness in top-line growth. We raise our 2023 EPS estimate to $14.41 from $13.48 and 2024’s to $15.69 from $15.30. DPZ posted Q3 EPS of $4.18 (+49.8% Y/Y), $0.88 above consensus. Revenue of $1,027M (-3.9% Y/Y), was $21M below consensus. Operating income grew 7.4% Y/Y to $189M, in line with consensus, and the margin widened 190 bps Y/Y to 18.4%. DPZ’s same store sales fell 0.6% in the U.S., but grew 3.3% (ex-FX) internationally. DPZ noted continued food basket cost deflation, buoyed by the adoption and usage of its revamped loyalty program. While we’re encouraged by DPZ’s recent initiatives, including partnerships with Uber Eats and Microsoft, the magnitude and trajectory of the benefits remain uncertain. In addition, rising labor costs remain a

Domino’s Pizza (NYSE:DPZ) Enterprises: Expects Material Sales, Earnings Improvements in FY 2024.

Domino’s Pizza (NYSE:DPZ) reported fiscal Q2 earnings  of $3.08 per diluted share, up from $2.82 a year earlier. Analysts polled by Capital IQ expected $3.07. Total revenue for the quarter ended June 18 was $1.02 billion, down from $1.07 billion a year ago. Analysts surveyed by Capital IQ expected $1.07 billion. Domino’s Pizza’s board maintained its quarterly dividend at $1.21 per share, payable on Sept. 29 to shareholders as of Sept. 15.