Domino’s Pizza (NYSE:DPZ) gained in pre-market trading after it reported better-than-expected fourth-quarter earnings. The pizza chain reported Q4 earnings of $4.48 per diluted share compared to $4.43 per share in the same period last year. This surpassed Street estimates of $4.38 per share.
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The pizza restaurant chain posted revenues of $1.4 billion in the fourth quarter, inching up by 0.8% year-over-year compared to analysts’ estimates of $1.42 billion. DPZ’s same-store sales in Q4 increased by 2.8%, higher than Street estimates of a rise of 2.2% following a revamp of its loyalty program and its delivery partnership with Uber Eats.
Moreover, DPZ bumped up its quarterly dividend by 25% to $1.51 per share for shareholders of record on March 15, to be paid on March 29, 2024. The company’s Board of Directors has also authorized a stock buyback of $1 billion, adding to the existing $141.3 million that was remaining, for a total of $1.14 billion.
Is DPZ a Good Stock to 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 stock has soared by more than 45%, and the average DPZ price target of $439.73 implies an upside potential of 1.4% at current levels. However, it’s worth noting that estimates will likely change following today’s earnings report.
