Domino's Pizza, Inc. (DPZ, Financial) announced its first-quarter revenue, which totaled $1.11 billion, narrowly missing the consensus estimate of $1.12 billion. The company's U.S. same-store sales experienced a slight decline of 0.5% during the quarter. Despite this, the firm emphasized its strategic focus on expanding market share within the quick-service restaurant (QSR) pizza sector, both domestically and internationally.
CEO Russell Weiner highlighted the company's commitment to its "Hungry for MORE" strategy, which aims to boost sales, expand store numbers, and increase profits annually. This approach is seen as vital for navigating the current challenging global economic climate and ensuring long-term value for both franchisees and shareholders.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 31 analysts, the average target price for Domino's Pizza Inc (DPZ, Financial) is $483.07 with a high estimate of $559.00 and a low estimate of $370.00. The average target implies an downside of 0.93% from the current price of $487.58. More detailed estimate data can be found on the Domino's Pizza Inc (DPZ) Forecast page.
Based on the consensus recommendation from 35 brokerage firms, Domino's Pizza Inc's (DPZ, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Domino's Pizza Inc (DPZ, Financial) in one year is $471.39, suggesting a downside of 3.32% from the current price of $487.58. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Domino's Pizza Inc (DPZ) Summary page.
DPZ Key Business Developments
Release Date: February 24, 2025
- US Retail Sales Growth: 5.3% in 2024.
- Same Store Sales Growth (Carryout): Over 6% for the year.
- Global Retail Sales Growth: 4.4% in Q4, 6% for the year, excluding foreign currency impact.
- US Same Store Sales: 0.4% in Q4, driven by carryout up 3.2% and delivery down 1.4%.
- US Franchisee Store Profitability: Approximately $162,000 in 2024.
- Net New Stores (US): 84 in Q4, total US store count at 7,014.
- International Same Store Sales Growth: 2.7% in Q4.
- Operating Profit Growth: 8% for the year.
- Dividend Increase: 15% announced.
- Share Repurchase: Approximately 259,000 shares repurchased for $112 million in Q4.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Domino's Pizza Inc (DPZ, Financial) achieved a 5.3% growth in US retail sales in 2024, driven by positive order count growth and strong carryout business.
- The company successfully launched two new products, New York Style Pizza and Mac and Cheese Pasta, contributing to its innovation strategy.
- Domino's Pizza Inc (DPZ) expanded its aggregator channel presence with Uber, achieving 3% of sales through this channel by year-end.
- The Domino's rewards program saw significant growth, with active members increasing by 2.5 million to 35.7 million users.
- Internationally, Domino's Pizza Inc (DPZ) achieved 31 straight years of same-store sales growth, with strong performance in markets like India and Canada.
Negative Points
- Domino's Pizza Inc (DPZ) faced macroeconomic and competitive pressures, impacting US in-store sales and franchisee profitability.
- The company's US delivery segment saw a decline of 1.4% in same-store sales, affected by pressures on low-income customers.
- International same-store sales growth expectations for 2025 remain conservative at 1% to 2%, reflecting ongoing macroeconomic challenges.
- The company missed its US unit growth target for 2024, partly due to hurricane-related disruptions.
- Domino's Pizza Inc (DPZ) anticipates continued pressure on global retail sales and profit expectations due to store closures by its Australian master franchisee.
