Why Domino's Pizza Shares Are Sliding Today
Portfolio Pulse from Shivani Kumaresan
Domino's Pizza Inc (NYSE:DPZ) reported a Q3 FY23 sales decline of 3.9% YoY to $1.03 billion, missing the analyst consensus of $1.05 billion. The decrease was primarily due to lower supply chain and U.S. Company-owned store revenues. Global retail sales increased 4.9%, excluding the positive impact of foreign currency. The company had a global net store decrease of 8 stores. EPS of $4.18 beat the analyst consensus estimate of $3.30. The company's Board of Directors declared a $1.21 per share quarterly dividend. In Q3, the company repurchased and retired 229,860 shares of common stock for a total of $90 million.
October 12, 2023 | 12:13 pm
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NEGATIVE IMPACT
Domino's Pizza reported lower than expected Q3 FY23 sales and a decrease in global net stores, but beat EPS estimates and declared a quarterly dividend. The company's shares are trading lower.
Domino's Pizza's lower than expected sales and decrease in global net stores are negative indicators that could lead to a decrease in the company's stock price. However, the company's higher than expected EPS and declared dividend could provide some positive sentiment among investors. Overall, the negative factors seem to outweigh the positive, leading to a negative short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100