Domino’s Pizza Reports Mixed Results Amid Market Challenges

Domino’s Pizza, Inc. (DPZ), headquartered in Ann Arbor, Michigan, holds a market cap of $15.8 billion, making it a prominent player in the Quick-Service Restaurant (QSR) pizza market. The company operates through three primary segments: U.S. Stores, International Franchise, and Supply Chain, distributing its offerings via both company-owned and franchised outlets.

As a member of the “large-cap” stock category, which includes companies valued at $10 billion or more, Domino’s represents a significant investment opportunity. Beyond its iconic pizzas, the menu features a range of items such as breadsticks, chicken wings, pasta, sandwiches, dips, desserts, and soft drinks.

Despite its strong branding, Domino’s experienced a pullback of 15.3% from its 52-week high of $542.75. Nonetheless, shares have risen 6.2% over the last three months, significantly better than the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 12.4% decline during the same period.

Looking at the year-to-date, DPZ Stock has increased by 9.5%, outperforming XLY, which is down 8.8%. However, over the past 52 weeks, Domino’s shares have dropped 4.8%, falling short of XLY’s impressive 12.2% return.

Since late January, DPZ Stock has largely traded above both its 50-day and 200-day moving averages, showing some stability in its price movements.

On February 24, shares of Domino’s Pizza declined by 1.5% following disappointing Q4 2024 results that missed analysts’ expectations in terms of revenue and earnings. The earnings per share (EPS) was $4.89, a 9.2% year-over-year increase but below estimates, while revenue rose 2.9% to $1.4 billion, not meeting projections. Despite achieving a 31st consecutive year of growth in international same-store sales and nearly 800 net new store openings, management highlighted challenges in consumer spending. They also indicated a strategic shift for 2025 focused more on market share growth rather than aggressive expansion.

In contrast, competitor McDonald’s Corporation (MCD) has seen slower growth, with shares rising 11.9% over the past year and increasing by 7.5% year-to-date.

Although DPZ has shown strong performance year-to-date, analysts maintain a cautiously optimistic outlook. The Stock holds a consensus rating of “Moderate Buy” among 29 analysts. Currently, the stock is trading below the mean price target of $491.27.

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.

More news from Barchart

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.