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Why Investors Aren’t Hungry for Domino’s After Earnings

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By Chris Lange Updated Published
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Why Investors Aren’t Hungry for Domino’s After Earnings

© Wikimedia Commons (Michael Stern)

When Domino’s Pizza Inc. (NYSE: DPZ | DPZ Price Prediction) reported its fourth-quarter financial results before the markets opened on Thursday, the company posted $2.62 in earnings per share (EPS) and $1.08 billion in revenue. The consensus estimates had called for EPS of $2.69 on $1.1 billion in revenue. The fourth quarter of last year reportedly had $2.09 in EPS and revenue of $891.511 million.

During the most recent quarter, same-store sales grew 5.6% in the United States and 2.4% internationally. Global retail sales growth totaled 9.5%.

The pizza chain had fourth-quarter global net store growth of 560 stores, comprised of 125 net new U.S. stores and 435 net new international stores. In fiscal 2018, the company opened 1,058 net new stores, comprised of 258 net new U.S. stores and 800 net new international stores.

Looking ahead to the next three to five years, the company expects to see global retail sales growth in the range of 8% to 12%. The consensus estimates for the current year are $9.55 in EPS and $3.78 billion in revenue.

[nativounit]

Ritch Allison, Domino’s CEO, commented:

I am pleased with our fourth quarter, which capped a very strong 2018 for Domino’s. Our long-game approach, driven by fundamentals and the finest franchisee base in QSR across the globe, continues to pace the industry – and we are excited to execute our global strategy in 2019 and beyond.

Shares of Domino’s closed Wednesday at $278.49, with a consensus price target of $295.67 and in a 52-week trading range of $218.00 to $305.34. Following the announcement, the stock was down about 6% at $261.00.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.

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