Domino's same-store sales miss estimates, shares tumble

Daniel Fowler
October 9, 2019

Domino's Pizza stock opened at $242.21 on Tuesday. At the time of writing, this stock's 50-day Moving Average stands at $239.89, while the 200-day Moving Average of this stock is now $259.32.

Diluted EPS was $2.05 for the third quarter of 2019, up 5.1% over the prior year quarter, primarily resulting from higher income from operations, offset in part by a higher effective tax rate.

Domino's Pizza also announced boardroom approval for a $1 billion Dollars share buyback plan, which helped DPZ stock recover from earlier losses.

Domino's Pizza (NYSE:DPZ) last posted its quarterly earnings data on Tuesday, July 16th.

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-Same-store sales at Domino's USA restaurants grew 2.4 per cent in the third quarter, missing the 2.6 per cent average of analysts' estimates, according to Consensus Metrix. The business had revenue of $811.65 million for the quarter, compared to analysts' expectations of $834.87 million.

This strategy may not be working, however, as the company slashed its long-term sales growth outlook from a range of 8% to 12% to between 7% and 10%. Consensus estimates call for $9.44 in EPS and $3.61 billion for the 2019 full year. Investors of record on Friday, September 13th were paid a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 1.07%. Domino's Pizza, Inc.'s current insider ownership accounts for 0.20%, in contrast to 100.00% institutional ownership.

Several research firms have recently commented on DPZ. Cornerstone Advisors Inc. boosted its position in shares of Domino's Pizza by 36.2% in the 2nd quarter. Advisory Services Network LLC now owns 312 shares of the restaurant operator's stock valued at $87,000 after acquiring an additional 277 shares during the last quarter. Finally, Parallax Volatility Advisers L.P. bought a new stake in shares of Domino's Pizza in the 2nd quarter worth approximately $88,000.

Domino's Pizza Inc. says it's going to shorten its long-range outlook on some business metrics to two-to-three years from three-to-five years because the new restaurant landscape makes the view further out less significant. Domino's now anticipates US same-store sales growth between 2% and 5%. Argus dropped their price target on shares of Domino's Pizza from $310.00 to $280.00 and set a buy rating for the company in a research note on Wednesday, July 17th.

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