Stores, International Franchise, and Supply Chain. The company’s shares are currently up 3.42% on the day to $299.76.ĭomino’s Pizza, Inc., through its subsidiaries, operates as a pizza company in the United States and internationally. (NYSE: DPZ) has caught the attention of the investment community today with its bullish price action. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.Domino’s Pizza, Inc. When our award-winning analyst team has a stock tip, it can pay to listen. That being said, Domino's has increased its operating profit margin by nearly 1,000 basis points during that time, so the higher price could be justified.ġ0 stocks we like better than Domino's Pizza The company is trading at a price-to-earnings ratio of 34.6, near the ratio's higher end over the last 10 years. Rising costs for labor, materials, and freight are filtering up as the coronavirus pandemic disrupts all parts of the supply chain.ĭespite those challenges, Domino's margins increased, which led to earnings per share increasing to $3.24, up by 30% from the same quarter last year and ahead of analyst estimates on Wall Street. ![]() On the other, Domino's increased its profit margins across the board in a tough business environment. On the one hand, the end of same-store sales growth in the U.S. The market is not sure what to make of Domino's earnings results. Domino's Q3 earnings getting mixed ratingsĭomino's stock initially rose on the news but has fallen 4.5% since the release of Q3 earnings results Thursday morning. Management noted difficulty finding sufficient staffing for new stores as well as for construction and other supply constraints. Similar factors causing the decline in same-store sales growth in the U.S. That brought the total breakdown to 11,631 for the former and 6,426 for the latter. A net 278 Domino's opened internationally in Q3 versus just 45 domestically. Domino's and its franchisees already had more stores open internationally than domestically, and the trend accelerated in the quarter. Interestingly, the international segment continued taking a more prominent role in the company overall. The segment includes countries like India, Japan, China, and others, each enduring unique phases of the coronavirus pandemic. It seems, while some franchisees did increase incentives to attract workers, others decided to operate fewer hours or at reduced staffing levels.įortunately, Domino's sustained its longer-running streak (111 quarters) of same-store sales growth internationally by reporting an 8.8% increase in the metric from the year before. ![]() Remember, Domino's runs on a franchise business model, and its franchisees have lots of discretion on what they pay to attract staff. In addition to having a high bar to jump, Domino's end to the streak can be attributed to widely reported labor shortages. Last year's third-quarter growth rate of 17.5% was the highest it has achieved in its history as a public company. Still, it is not surprising given Domino's report was comparing with a robust growth rate in the previous year. So it was a bit of a disappointment to see the streak end when the company reported a 1.9% year-over-year decrease in the metric in the third quarter. ![]() Labor shortages hurting sales in the U.S.ĭomino's long-running streak of same-store sales growth went back to 2009.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |