DPZ

Domino’s Pizza (DPZ) reported fiscal Q2 earnings Thursday of $4.03 per diluted share, up from $3.08 a year earlier. Analysts polled by Capital IQ expected $3.68 per share. Revenue for the quarter ended June 16 was $1.1 billion, compared with $1.02 billion a year earlier. Analysts surveyed by Capital IQ expected $1.1 billion. The pizza chain’s US same-store sales grew 4.8% in fiscal Q2, while international same-store sales, excluding foreign currency impact, grew 2.1%. The company also said it expects to miss its 2024 goal of more than 925 net international stores by 175 to 275 stores due to challenges faced by its master franchisee, Domino’s Pizza Enterprises. Domino’s also suspended its guidance of more than 1,100 global net stores until the full impact of the franchisee’s situation is understood, the company said. Shares of the company were down more than 14% in recent premarket activity.

Value wars have broken out at McDonald’s, Burger King and other U.S. chains offering discounts on meals to try and lure customers back, but Domino’s Pizza thinks its approach to everyday value “breaks through the sea of sameness.” The world’s largest pizza chain says in a 2Q call that a loyalty program delivering rewards more quickly is paying off with consumers seeking deals, as are promotions through Uber Eats. Domino’s reported a U.S. same-store sales increase of 4.8% for 2Q, and many analysts were hoping the company would report a bigger lift in domestic sales. Domino’s sinks 10% in early trading.

Domino’s Pizza expects to fall 175 to 275 stores below its 2024 goal of adding 925+ new stores internationally, primarily because of challenges in both openings and closings faced by one of its master franchisees. The franchisee, Domino’s Pizza Enterprises, is partnering closely with Domino’s to work through the process. Domino’s says it will have more updates once it can get more visibility into the effect these challenges will have on net store growth numbers. For now though, the company says it is temporarily suspending guidance for 1,100+ global net stores until the full effect of DPE’s store opens and closures on international net store growth are known. In the U.S., the company still expects to add 175+ net stores annually for 2024 to 2028. Domino’s falls 12% in premarket trading.

Domino’s Pizza’s grew revenue by 7.1% in the second quarter even as other restaurant chains struggled. The pizza chain also posted earnings early Thursday that beat Wall Street forecasts because of one-time gains. For the three months ended in June, the company grew earnings by 30.8% from a year ago to $4.03 per share. Analysts polled by FactSet had expected $3.68. Total revenue came at $1.1 billion, slightly below analyst expectations. The earnings gain was primarily due to a change in pretax unrealized gains and losses associated with the company’s investment in DPC Dash, its exclusive franchisee in the China region, according to Domino’s. “For the second straight quarter we drove U.S. comp performance in the healthiest way possible, through profitable order count growth,” said CEO Russell Weiner in a statement, noting that the firm has seen positive order counts in both its delivery and carryout businesses across all income

Domino’s Pizza Inc (NYSE:DPZ) shares were climbing Tuesday after the company reported better-than-expected first-quarter results. The results came amid an exciting earnings season. Here are some key analyst takeaways from the release. BMO Capital Markets On Domino’s Pizza Analyst Andrew Strelzik reiterated an Outperform rating while raising the price target from $535 to $575. Domino’s Pizza reported first-quarter earnings of $3.58 per share, surpassing consensus of $3.41 per share, with the beat being “driven by stronger comps, higher supply chain profits, and a lower tax rate,” Strelzik said in a note. The company “continues to realize meaningful domestic business momentum,” with its partnership with Uber Technologies Inc’s (NYSE:UBER) Uber Eats and loyalty revamp, “as well as more vocal marketing,” he added. “DPZ’s strategy is driving broad momentum, including among the more challenged low-income consumer cohort, which should extend through the remainder of 2024 and beyond,” the analyst further wrote. TD Cowen On Domino’s Pizza Analyst Andrew Charles maintained

Domino’s Pizza Group delivered a negative first-quarter performance, but store rollout is seen as an indicator for its medium-term health, Numis analysts Richard Stuber and Tim Barrett write in a research note. The pizza chain–the holder of the master franchise agreement to own, operate and franchise Domino’s stores in the U.K. and Ireland–still expects to open more than 70 stores this year, with 38 stores under construction or with planning permission, the analysts say. The company’s initiatives including its GBP4 lunch offer, loyalty trial and Uber Eats rollout support management’s reiteration of its full-year earnings guidance, they add. Shares are down 0.9% at 322.80 pence.

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.

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 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.

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.

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

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