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Domino's Pizza, Inc. (DPZ), valued at a market cap of $15 billion, is a leading player in the Quick-Service Restaurant (QSR) pizza category, specializing in pizza delivery both in the U.S. and internationally. The Michigan-based pizza restaurant chain is expected to announce its fiscal Q3 earnings results before the market opens on Thursday, October 10.
Ahead of the event, analysts expect DPZ to report a profit of $3.68 per share, down 12% from $4.18 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the past four quarterly reports.
The company surpassed the consensus EPS estimate by 8.9% in the most recent quarter, thanks to higher supply chain revenues due to increased order volumes and food basket pricing. Additionally, strong U.S. franchise advertising, royalties, and fees contributed to the positive performance.
For fiscal 2024, analysts expect Domino's Pizza to report EPS of $16.24, up 10.8% from $14.66 in fiscal 2023. For 2025, the company’s EPS is projected to rise 9.9% year over year to $17.85.
DPZ has surged 12.8% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 34.2% gain and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 26.8% returns over the same period.
Shifting consumer patterns and persistent challenges in store openings and closures have hampered DPZ’s price momentum over the past year.
On Jul. 18, DPZ shares fell more than 13% after reporting its Q2 earnings results. Domino's Pizza reported an EPS of $4.03, surpassing Wall Street's estimate of $3.70, while revenue met expectations at $1.1 billion. However, domestic comparable sales growth of 4.8% fell slightly short of the 4.9% consensus. Additionally, the company cautioned it would miss its international store growth target for the year, raising investor concerns and contributing to the decline in its stock price.
Analysts' consensus view on Domino's Pizza stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 29 analysts covering the stock, 16 recommend a "Strong Buy," two have a "Moderate Buy" rating, 10 give a "Hold" rating, and the remaining one analyst suggests a "Strong Sell."
This configuration is slightly more bullish than three months ago, with 14 analysts suggesting a "Strong Buy." The mean analyst price target for DPZ is $496, suggesting a potential upside of 15.6% from current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
