DPZ

Domino’s Pizza’s ‘Accelerating Growth’ to Drive Upside in Next Quarters, UBS Says

Domino’s Pizza (DPZ) is set to become one of the few “accelerating growth stories” in the restaurant sector in the coming quarters with an expected upside to 2024 consensus estimates and valuation growth, UBS said Friday in a report. The catalysts to the accelerated growth include the launch of an enhanced loyalty program, a 3P partnership with Uber Eats, continued carryout share gains, improved services and menu and tech innovations, UBS said. “Reaccelerating global unit growth into 2024 should reflect an improved US store expansion trajectory, as well as reduced international closures,” UBS said. UBS expects “better sales momentum” starting in Q4 and into 2024 on higher demand, the loyalty program and the Uber Eats partnership, reducing the importance of Q3 results. UBS rates Domino’s Pizza buy with a stock price target of $450.

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Domino’s Pizza (NYSE:DPZ) Fiscal Q2 Earnings Rise, Revenue Falls

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.

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