Domino’s Pizza Inc. (DPZ) shares fell 2.2% in premarket trading Monday after the pizza chain’s mixed first-quarter results showed strength internationally but weakness in its domestic market.
Q1 Results Show Mixed Performance
Domino’s reported first-quarter earnings of $4.33 per share, up 21% from $3.58 per share a year earlier and above the analyst estimate of $4.05. However, revenue rose just 2.5% to $1.11 billion, missing the projected $1.12 billion forecast. U.S. comparable sales declined 0.5%, compared to 5.6% growth in the year-ago quarter, while international same-store sales increased by 3.7%, significantly outperforming the 0.9% growth recorded in the previous year.
Earnings vs Estimates. Source: Bloomberg L.P.
Performance metrics showed weakness in domestic operations with company-owned stores experiencing a 1.5% drop in gross margin, primarily due to increased food-basket pricing. Domestic franchise comparable sales fell 0.4% against estimates of 0.36% growth, while company-owned stores saw a steeper 2.9% decline compared to the expected 0.35% decrease.
International Growth Offsets Domestic Weakness
The company’s global retail sales increased 4.7% year-over-year to $4.46 billion, with international markets driving much of the growth despite challenges from foreign currency weakness. While U.S. operations struggled, Domino’s international business showed resilience with comparable sales growth of 3.7%, substantially exceeding the estimated 1.88% increase.
“Sustained market share growth reflects a company’s ability to control what is under its control, a key to long-term success,” said CEO Russell Weiner in a statement. “In the face of a challenging global macroeconomic environment, our Hungry for MORE strategic pillars are working together to drive MORE sales, MORE stores and MORE profits, annually.”
Domino’s Pizza (D1)
The stock is trading near a level that has acted as strong resistance over the past few months, often leading to trend reversals. Bears are likely to target a retest of the 30- and 50-day SMAs, while bulls will aim to break above the recent high at $499. The RSI continues to show bullish divergence, while the MACD is widening, supporting bullish momentum.
The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.
