Domino’s Pizza Inc (NYSE:DPZ) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “Domino's shares have outpaced the industry year to date. The company’s solid brand positioning should continue to boost sales in the upcoming quarters. Also, efforts to accelerate its presence in high-growth international markets bode well. Notably, the company’s revenues and earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In fact, second-quarter 2017 marked the 25th and 94th consecutive quarter of positive same-store-sales domestically and internationally, respectively. Going forward, Domino's initiatives on the digital front, focus on re-imaging and other sales boosting strategies are expected to help sustain the momentum. Yet, higher costs and negative currency translation are likely to hurt profits. A soft consumer spending environment in the U.S. restaurants space might limit revenue growth too.”
Several other equities analysts have also recently issued reports on DPZ. BTIG Research reaffirmed a “buy” rating and set a $233.00 price objective (up from $213.00) on shares of Domino’s Pizza in a report on Thursday, June 1st. BidaskClub cut Domino’s Pizza from a “buy” rating to a “hold” rating in a report on Monday, July 24th. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $215.00 price objective on shares of Domino’s Pizza in a report on Tuesday, July 25th. Maxim Group lifted their price objective on Domino’s Pizza from $186.00 to $200.00 and gave the stock a “hold” rating in a report on Thursday, June 1st. Finally, Argus cut Domino’s Pizza from a “buy” rating to a “hold” rating and lifted their price objective for the stock from $145.00 to $183.30 in a report on Friday, August 25th. Thirteen analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus target price of $193.90.
Domino’s Pizza (NYSE:DPZ) opened at 189.92 on Wednesday. Domino’s Pizza has a 52 week low of $148.95 and a 52 week high of $221.58. The firm has a market capitalization of $9.16 billion, a P/E ratio of 37.74 and a beta of 0.36. The stock’s 50 day moving average price is $188.18 and its 200 day moving average price is $194.28.
Domino’s Pizza (NYSE:DPZ) last posted its quarterly earnings results on Tuesday, July 25th. The restaurant operator reported $1.32 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.23 by $0.09. Domino’s Pizza had a negative return on equity of 13.28% and a net margin of 9.40%. The firm had revenue of $628.61 million for the quarter, compared to the consensus estimate of $609.87 million. During the same period in the previous year, the business earned $0.98 earnings per share. The company’s revenue for the quarter was up 14.8% compared to the same quarter last year. On average, equities analysts expect that Domino’s Pizza will post $5.69 EPS for the current year.
Domino’s Pizza announced that its board has initiated a share buyback plan on Wednesday, August 2nd that permits the company to buyback $1.25 billion in shares. This buyback authorization permits the restaurant operator to reacquire up to 13.5% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its shares are undervalued.
A number of hedge funds have recently bought and sold shares of the business. BlackRock Inc. boosted its position in shares of Domino’s Pizza by 0.5% in the second quarter. BlackRock Inc. now owns 5,369,812 shares of the restaurant operator’s stock worth $1,135,876,000 after buying an additional 24,988 shares during the period. Vanguard Group Inc. boosted its position in shares of Domino’s Pizza by 8.5% in the second quarter. Vanguard Group Inc. now owns 4,164,927 shares of the restaurant operator’s stock worth $881,007,000 after buying an additional 327,585 shares during the period. Renaissance Technologies LLC boosted its position in shares of Domino’s Pizza by 43.7% in the second quarter. Renaissance Technologies LLC now owns 3,060,900 shares of the restaurant operator’s stock worth $647,472,000 after buying an additional 930,200 shares during the period. State Street Corp boosted its position in shares of Domino’s Pizza by 1.1% in the first quarter. State Street Corp now owns 1,538,004 shares of the restaurant operator’s stock worth $283,451,000 after buying an additional 16,726 shares during the period. Finally, Arrowstreet Capital Limited Partnership boosted its position in shares of Domino’s Pizza by 26.7% in the second quarter. Arrowstreet Capital Limited Partnership now owns 732,223 shares of the restaurant operator’s stock worth $154,887,000 after buying an additional 154,417 shares during the period. 94.33% of the stock is owned by hedge funds and other institutional investors.
Domino’s Pizza Company Profile
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.
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