Domino’s Pizza, Inc. (NYSE:DPZ) Beat Wall Street Estimates

Domino’s Pizza, Inc. (NYSE:DPZ) Beat Wall Street Estimates

$DPZ #USA #NYSE #Dominos #Pizza #WallStreet #Earnings #Stocks

Domino’s Pizza
Ticker: NYSE:DPZ
Price: $407.52

Company News

Domino’s pizza on Thursday reported that its quarterly U.S. same-store sales soared 16.1% as additional customers ordered pizza delivery and takeout throughout the coronavirus pandemic.

Shares were down 1.5% in morning trading amid a broader market sell off.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.99 vs. $2.24 expected
  • Revenue: $920 million vs. $911.5 million expected
  • The pizza chain reported fiscal second-quarter net income of $118.7 million, or $2.99 per share, up from $92.4 million, or $2.19 per share, a year earlier. Analysts surveyed by Refinitiv expected $2.24 per share.

Domino’s spent about $11 million on expenses related to the pandemic, including sick pay for employees and personal protective equipment. It took a $7 million hit from lower royalty revenues related to partial store closures but saved about $1 million on travel expenses.

During the quarter ended june 14, net sales rose 13.4% to $920 million, topping expectations of $911.5 million. Executives said that U.S. sales remained elevated through the end of the quarter even as many states reopened dining rooms.

“We still believe we are well-positioned to grow our global market share both during and after this pandemic,” CFO Jeff Lawrence told analysts.

U.S. same-store sales increased by 16.1%, while international same-store sales grew by just 1.3%, due to more store closures. Its international markets saw as many as 2,400 locations closed at its lowest point, however as of July 8, fewer than 600 of its restaurants were temporarily closed.

CEO Ritch Allison said that customers were spending more on their pizza orders, often to have leftovers the next day. He also said that the company expects customers to have higher expectations around safety and contactless experiences “for the foreseeable future.”

Domino’s opened 39 net new U.S. locations and 45 net new international restaurants.

The company also announced that Lawrence will retire as chief financial officer once Domino’s finds his successor.

At a time when many companies have suspended their dividends, Domino’s will pay out a 78 cent dividend for shareholders on Sept. 30. the company has $248 million in cash and cash equivalents readily available, as of June 14.

Business Summary

Domino’s Pizza, Inc. is a pizza restaurant chain company.

As of January 1, 2017, the Company operated in over 13,800 locations in over 85 markets around the world.

The Company operates through three segments: domestic stores, international franchise and supply chain.

Its basic menu features pizza products in various sizes and crust types.

As of January 1, 2017, its Domestic Stores segment consisted primarily of its franchise operations, which consisted of 4,979 franchised stores located in the contiguous United States.

As of January 1, 2017, its International Franchise segment consisted of a network of franchised stores in over 85 international markets.

As of January 1, 2017, its supply chain segment operated 18 regional dough manufacturing and food supply chain centers in the United States, one thin crust manufacturing center, one vegetable processing center and one center providing equipment and supplies to certain of its domestic and international stores.

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 367.39.

The projected upper bound is: 429.07.

The projected lower bound is: 387.41.

The projected closing price is: 408.24.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 71.5469. This is not an overbought or oversold reading. The last signal was a sell 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 65.47. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 130.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.

Rex Takasugi – TD Profile

DOMINOS PIZZA closed down -6.160 at 407.520. Volume was 43% above average (neutral) and Bollinger Bands were 7% wider than normal.

Open      High       Low        Close        Volume
404.000   422.150    403.760    407.520      370,286
Technical Outlook
Short Term:        Overbought
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period      50-period       200-period
Close:           393.31         379.73          321.42
Volatility:      30             35              54
Volume:          224,553        287,756         238,750

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

DOMINOS PIZZA is currently 26.8% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods.

Our volume indicators reflect moderate flows of volume into DPZ.N (mildly bullish). Our trend forecasting oscillators are currently bullish on DPZ.N and have had this outlook for the last 5 periods.

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