Neharika Jain
2 min read
In This Article:
Valued at a market cap of $15.3 billion, Domino's Pizza, Inc. (DPZ) is a pizza company that operates a mix of company-owned and franchised stores in over 90 countries. The Ann Arbor, Michigan-based company specializes in a wide variety of pizzas, sides, and beverages, with a strong emphasis on technology-driven ordering through its mobile app and digital platforms. It is expected to announce its fiscal Q2 earnings for 2025 before the market opens on Monday, Jul. 21.
Prior to this event, analysts project this pizza company to report a profit of $3.94 per share, down 2.2% from $4.03 per share in the year-ago quarter. The company has exceeded Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion. Its earnings of $4.33 per share in the previous quarter outpaced the consensus estimates by 5.1%.
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For the full year, analysts expect DPZ to report EPS of $17.76, up 6.4% from $16.69 in fiscal 2024. Furthermore, its EPS is expected to grow 9.4% year over year to $19.42 in fiscal 2026.
DPZ has declined 13.5% over the past 52 weeks, considerably lagging behind both the S&P 500 Index's ($SPX) 12.6% rise and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 18.5% return over the same time frame.
On Apr. 28, shares of DPZ surged marginally after its mixed Q1 earnings release. The company’s revenue improved 2.5% year-over-year to $1.1 billion but came in slightly below the consensus estimates, primarily due to lower revenue from U.S. company-owned stores. On the other hand, its net income per share of $4.33 climbed 20.9% from the same period last year and surpassed analyst expectations by 5.1%. Despite ongoing global macroeconomic challenges, the company attributed its year-over-year growth to its “Hungry for MORE” strategy, which focuses on driving more sales, expanding store count, and increasing profitability.
Wall Street analysts are moderately optimistic about DPZ’s stock, with a "Moderate Buy" rating overall. Among 28 analysts covering the stock, 15 recommend "Strong Buy," two suggest “Moderate Buy,” nine indicate “Hold,” and two recommend "Strong Sell” rating. The mean price target for DPZ is $507.55, which indicates a 13.7% potential upside from the current levels.
On the date of publication, Neharika Jain 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. This article was originally published on Barchart.com
