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Domino's Pizza, Inc. (DPZ), headquartered in Ann Arbor, Michigan, operates as a pizza company. With a market cap of $15.7 billion, the company operates a network of company-owned and franchise Domino's Pizza stores, located worldwide. DPZ also operates regional dough manufacturing and distribution centers.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and DPZ perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the restaurants industry. DPZ leads the global pizza market with over 20,600 stores, driven by strong brand recognition, quality, and quick service. Its vast franchising model generates consistent royalty streams, while innovation and customer satisfaction initiatives fuel growth.
Despite its notable strength, DPZ shares slipped 16.5% from their 52-week high of $535.26, achieved on Jun. 24, 2024. Over the past three months, DPZ stock has declined 1.3%, underperforming the AdvisorShares Restaurant ETF’s (EATZ) 10.7% gains during the same time frame.
In the longer term, shares of DPZ rose 6.4% on a YTD basis, outperforming EATZ’s YTD gains of 5.6%. However, the stock fell 16.3% over the past 52 weeks, underperforming EATZ’s solid 20.1% returns over the last year.
To confirm the bearish trend, DPZ has been trading below its 50-day moving average since late May. The stock is trading below its 200-day moving average recently.
DPZ faces challenges due to consumer perceptions of unhealthy food options and ingredient quality, which is particularly concerning in today's health-conscious market.
On Apr. 28, DPZ shares closed up marginally after reporting its Q1 results. Its EPS of $4.33 exceeded Wall Street expectations of $4.12. The company’s revenue was $1.11 billion, falling short of Wall Street forecasts of $1.12 billion.
In the competitive arena of restaurants, Papa John's International, Inc. (PZZA) has taken the lead over DPZ, showing resilience with a 19.3% gain on a YTD basis and 1% uptick over the past 52 weeks.
Wall Street analysts are moderately bullish on DPZ’s prospects. The stock has a consensus “Moderate Buy” rating from the 28 analysts covering it, and the mean price target of $507.55 suggests a potential upside of 13.6% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
