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With a market cap of $14.8 billion, Domino's Pizza, Inc. (DPZ) is a globally recognized leader in the pizza industry, offering fast delivery and a wide variety of menu options. The company operates through three main segments: U.S. Stores; International Franchise; and Supply Chain. With a focus on quality and customer satisfaction, Domino's continues to grow both domestically and internationally, providing a range of delicious pizzas and complementary menu items.
DPZ is expected to announce its fiscal Q4 earnings results on Monday, Feb. 24. Ahead of this event, analysts expect the pizza chain company to report a profit of $5.03 per share, up 12.3% from $4.48 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in the last four quarters. In Q3, DPZ exceeded the consensus EPS estimate by 12.9%.
For fiscal 2024, analysts expect the Ann Arbor, Michigan-based-based company to report an EPS of $16.82, up 14.7% from $14.66 in fiscal 2023.
Shares of Domino's Pizza have risen 1.9% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 24.4% surge and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 31.1% return over the period.
Despite Domino's Pizza reporting better-than-expected Q3 EPS of $4.19, its shares fell over 1% on Oct. 10. The company missed revenue expectations, reporting $1.1 billion compared to the consensus estimate, despite a 5.1% year-over-year increase. Additionally, Domino's issued soft guidance for 2024, lowering its global retail sales growth outlook to 6%, citing a challenging macroeconomic environment. However, the stock surged over 5% the next day as investors reacted positively to the substantial EPS beat, and analyst upgrades, including Evercore ISI removing its underperform rating and Morgan Stanley raising its price target to $520, bolstering market confidence.
Analysts' consensus view on Domino's Pizza’s stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 29 analysts covering the stock, 17 recommend "Strong Buy," two suggest "Moderate Buy," nine indicate “Hold,” and one gives "Strong Sell." This configuration is slightly more bullish than three months ago, with 16 analysts suggesting a "Strong Buy."
As of writing, DPZ is trading below the average analyst price target of $486.80.
