Key Stats for Domino’s Pizza Stock
- Price change for Domino’s Pizza stock in last 6 months: -20%
- $DPZ Stock Price as of Oct. 13: $296
- 52-Week High: $442
- $DPZ Stock Price Target: $373
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What Happened?
Domino’s Pizza (DPZ) reported higher third-quarter profit on Tuesday, despite slowing sales growth.
It was the first report under new CEO Joe Jordan.
- Net income rose to $152.2 million, or $4.60 per share. A year ago, it was $139.3 million, or $4.08 per share.
- Revenue was $1.19 billion, up 3.4%.
Higher supply chain revenue and franchise royalties drove the gain.
Global retail sales rose 3.2%, down from 6.3% a year ago. U.S. same-store sales grew just 0.3%, compared with 5.2% last year, and international same-store sales rose 0.2%, down from 1.7%.
The company said order counts grew in both delivery and carryout, but the average ticket was lower. Customers are also buying fewer items per order, and management blames a tough consumer environment.
Domino’s also trimmed its outlook and now expects U.S. same-store sales growth in the low single digits.
It cut its U.S. net new store forecast to 125-150 and international same-store sales are now expected to be about flat.
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What the Market Is Telling Us About Domino’s Pizza Stock
Domino’s Pizza stock now faces a split story. Profit and order counts look healthy, while sales growth and store openings look weaker.
The U.S. store forecast was the clearest warning. Franchisee profits are under pressure, which is slowing new openings.
CFO Sandeep Reddy said the long-term goal of 8,500-plus U.S. stores remains unchanged.
International sales remain soft, and the company pointed to ongoing problems at Domino’s Pizza Enterprises, its master franchisee in several markets.
It does not expect meaningful improvement until 2027. Jordan said the focus is on staying close to customers and helping franchisees earn more.
He pointed to a new product called The Domino as a growth driver.
The company repurchased about $305 million in stock in the first three quarters, and about $1.15 billion remains under its buyback authorization.
For now, Domino’s Pizza stock hinges on two questions. Can the company lift the average ticket, and can it restore franchisee profits and store growth?
More color is expected when it reports Q4 results.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
