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With a market cap of $17.3 billion, Domino's Pizza, Inc. (DPZ) dominates the QSR Pizza industry through its extensive network of U.S. stores, international franchises, and supply chain operations based in Ann Arbor, Michigan. The pizza restaurant chain is expected to announce its fiscal Q2 earnings results before the market opens on Thursday, July 18.
Ahead of the event, analysts expect DPZ to report a profit of $3.66 per share, up 18.8% from $3.08 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 6.2% in the most recent quarter, driven significantly by consumers in the United States tapping into offers through the pizza chain's loyalty program.
For fiscal 2024, analysts expect Domino's Pizza to report EPS of $16, up 9.1% from $14.66 in fiscal 2023.
Domino's Pizza has surged 47.7% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 24.3% gain and the S&P 500 Cons Disc Sector SPDR's (XLY) 9.3% returns over the same period.
Domino's Pizza stock surged on Feb. 26, driven by its strong Q4 earnings report, which surpassed expectations, alongside a substantial dividend increase and ambitious plans for store expansion and sales growth. Moreover, the stock jumped 5.6% on Apr. 29 after matching analysts' revenue expectations in its Q1 earnings, driven by increased supply chain revenues from higher order volumes. In addition, substantial U.S. franchise royalties and fees and solid U.S. Company-owned store sales contributed to the upbeat performance.
Analysts' consensus view on Domino's Pizza stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 28 analysts covering the stock, 14 recommend a "Strong Buy," two have a "Moderate Buy" rating, 11 give a "Hold" rating, and one suggests a "Strong Sell." This configuration is slightly more bullish than three months ago, with 13 analysts suggesting a "Strong Buy."
The average analyst price target for DPZ is $548, suggesting a potential upside of 10.2% from current levels.
On the date of publication, Sohini Mondal 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.
