Domino's Pizza's Soft US Sales Offset By Strong Company Margins, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Domino's Pizza Inc (DPZ) reported 2Q23 U.S. same-store sales growth of +0.1%, lower than Street estimates of +0.4%. Total revenues were $1.02 billion, lower than Street estimates of $1.07 billion. However, adjusted EPS of $3.08 and company-owned operating margins of 18.6% beat Street estimates. Stephens & Co analyst Joshua Long reiterated an Equal-Weight rating on DPZ shares with a price target of $365. DPZ shares are trading higher by 1.56% at $391.43.
July 24, 2023 | 4:58 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Domino's Pizza's 2Q23 earnings report showed mixed results with lower than expected sales and revenues but higher than expected EPS and operating margins. The stock is trading higher.
Despite lower than expected sales and revenues, Domino's Pizza's higher than expected EPS and operating margins seem to have a positive impact on the stock price. The market appears to be focusing more on the company's profitability rather than its sales performance. The analyst's Equal-Weight rating and price target of $365 also suggest a neutral to positive outlook for the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100