Domino's Pizza updated long-term guidance during its investor day confab Thursday. DPZ stock broke out past a buy point.
An investor presentation posted to Domino's website showed it now expects, through 2028:
- Annual retail global sales growth of "more than 7%," which is near the high end of the company's prevous expectations for 4-8% growth. (Analysts expect Domino's Pizza sales to shrink about 1% this year, FactSet shows. They expected sales growth of around 6.6% in 2024 and 2025.)
- More than 1,100 new stores vs. prior expectations for annual net store growth of 5%-7%
- More than 8% annual operating income growth vs. no profit guidance earlier
Accompanying slides showed the pizza company has been taking share from independent, regional and national pizza rivals.
DPZ Stock Jumps, MCD Spinoff
Shares of Domino's Pizza rose 2.4% to 402 on the stock market today. DPZ stock briefly topped a 409.95 buy point from a cup base, the MarketSmith chart shows.
McDonald's eyed a 299.35 entry after its own investor day Wednesday. It plans to open 10 locations of CosMc's, a new "small format" brand for beverages and snacks, including lattes and frappes. The first test location opens this week in Bolingbrook, Ill. Starbucks fell Thursday.
Other restaurant stocks are also gaining pace. Several have broken out or are nearing buy points. Those include Wingstop, Texas Roadhouse and Chipotle Mexican Grill.
Domino's Pizza, Uber Eats
In July, Domino's and Uber Eats partnered on deliveries.
Ahead of the investor day, RBC analysts said the pizza company could update its 2-3 year outlook.
The last outlook, issued in February, "does not include the potential benefit of the Uber partnership announced in July," they said.
The company's updated guidance Thursday was for 2024-2028.
New High For Domino's Stock
On Thursday, DPZ stock struck a 52-week high in intraday trading. It closed well off session highs and remains far below the December 2021 high.
The restaurant stock has surged more than 10% in the past month, regaining the 50-day moving average. Domino's stock is up nearly 20% year to date.
