Key Insights:
- Domino’s Pizza’s Q1 performance reveals a slight dip in domestic same-store sales but outpaces global sales forecasts.
- The company reports robust revenue growth and EPS surpassing expectations, alongside strategic share repurchases.
- Analyst consensus deems Domino's an "Outperform" with varied price targets, indicating a nuanced market outlook.
Quarterly Earnings Overview
Domino's Pizza (DPZ, Financial) faced a drop in trading early Monday post-reporting of its first-quarter earnings. Notably, domestic same-store sales slightly decreased by 0.5%, falling short of the predicted 0.3% growth. On the global front, sales excelled beyond expectations, rising by 3.7%. Despite economic headwinds, the company saw a 2.5% revenue increase, now standing at $1.11 billion. This growth was primarily driven by elevated franchise advertising and supply chain revenues. Impressively, Domino's net income soared by 18.9%, reaching $149.7 million due to investment gains, while earnings per share (EPS) surpassed estimates, reaching $4.33 compared to the expected $4.07. The company strategically repurchased $50 million in shares; however, a decrease in global net stores, balanced by domestic expansion, was observed.
Wall Street Analysts Forecast
According to forecasts by 31 analysts, Domino's Pizza Inc (DPZ, Financial) holds an average price target of $483.07, with highs reaching $559.00 and lows at $370.00. This average target indicates a potential downside of 0.93% from the current trading price of $487.58. For more comprehensive estimate data, visit the Domino's Pizza Inc (DPZ) Forecast page.
Brokerage Recommendations and GF Value Insight
With inputs from 35 brokerage firms, the average brokerage recommendation for Domino’s is positioned at 2.1, suggesting it as an "Outperform". The recommendation scale ranges from 1 (Strong Buy) to 5 (Sell), indicating a favorable market stance.
GuruFocus estimates propose a GF Value of $471.39 for Domino’s Pizza Inc (DPZ, Financial) over the next year, suggesting a potential downside of 3.32% from its current price of $487.58. The GF Value indicates the stock's fair trading value, calculated from its historical trading multiples, past growth, and future performance projections. For more in-depth data, explore the Domino's Pizza Inc (DPZ) Summary page.
