Domino's Pizza reports strong Q3 revenue growth, despite missing analyst expectations

From Nasdaq: 2024-10-10 11:21:00

Domino’s Pizza (NYSE: DPZ) is navigating current challenges well with Q3 results showing success from its Hungry for MORE strategy. Anticipated falling interest rates may impact the business positively and contribute to shareholder value until macroeconomic conditions improve for restaurant stocks.

Despite Domino’s Q3 revenue missing analyst expectations, the company showed revenue growth of 4.9% globally with solid earnings. U.S. and International segments both saw growth, leading to increased store counts and improved operating leverage, although margins contracted slightly. Capital return and balance sheet are expected to continue improving.

Domino’s guidance for 2024 and 2025 includes an expected earnings growth of 8% and increased store counts. Analysts have lowered price targets but still predict a 25% upside for the stock with strong conviction. Market dynamics suggest support at critical levels, potentially leading to a reversal in the share price towards $445 in the near future.



Read more at Nasdaq:: Domino’s Pizza Stock Delivers: A Hot Buy for Growth Investors