Domino’s Pizza (DPZ) reported mixed results for the Fiscal third quarter. The pizza restaurant chain’s total revenue increased 5.1% year-over-year to $1.08 billion in Q3, missing the Street’s consensus estimate of $1.1 billion. DPZ’s same-store sales in the U.S. grew by 3% in the third quarter. The top line reflected the impact of macroeconomic pressures on consumer spending.
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Meanwhile, the company reported earnings of $4.19 per share in the third quarter, up by 0.2% year over year. This was ahead of Street expectations of $3.65 per share.
DPZ Is Trying to Attract More Diners to its Restaurants
In an effort to attract more diners, the company has partnered with Uber Eats (UBER) and made significant updates to its loyalty program. As part of this initiative, it rolled out promotions, such as a “Moreflation” offer in September, which allowed diners to enjoy a free size upgrade on their orders.
DPZ Announces Quarterly Dividend
Furthermore, Domino’s Board of Directors announced a quarterly dividend of $1.51 per share on its outstanding common stock for shareholders as of December 13, to be paid on December 27, 2024. As of September 8, Domino’s Pizza had a total remaining stock buyback worth $926.3 million.
Domino’s Lowers Guidance for FY24
Looking ahead, the pizza restaurant chain now expects retail sales to grow 6% in FY24, below its long-term target of a growth of 7% or more. Moreover, DPZ anticipates that global net store growth will be between 800 and 850 in FY24, compared to the prior forecast of 825 to 925 stores. Over the long term, that is, between 2026 and 2028, DPZ continues to estimate its annual sales to increase by over 7% and its income from operations to grow by more than 8% annually.
Is Domino’s Pizza Stock a Buy?
Analysts remain cautiously optimistic about DPZ stock, with a Moderate Buy consensus rating based on 16 Buys, nine Holds, and one Sell. Over the past year, DPZ has increased by more than 15%, and the average DPZ price target of $487.32 implies an upside potential of 17.9% from current levels. These analyst ratings are likely to change following DPZ’s results today.
