Analysts revise forecasts following first quarter results


Benzinga – By Priya Nigam, Benzinga Staff Writer.

Domino's Pizza Co., Ltd. (NYSE:DPZ) stock rose on Tuesday after the company reported better-than-expected first-quarter results.

The results were announced amid an exciting earnings season. Here are some key takeaways for analysts from this release.

Domino's Pizza BMO Capital Markets
Analyst Andrew Strelzyk The company raised its price target to $575 from $535 and reiterated its outperform rating.

Domino's Pizza reported first-quarter earnings of $3.58 per share, beating consensus of $3.41 per share, and said the strong performance was “driven by strong operating results, higher supply chain margins and lower tax rates.” Strelzyk said in a memo.

The company said it “continues to realize meaningful momentum in its domestic business.” In partnership with Uber Technologies Inc. (NYSE:UBER) Uber Eats and loyalty revamps, he added, and “even more vocal marketing.”

“DPZ's strategy is driving broad momentum, including in more challenging low-income consumer segments, and that momentum should continue through the remainder of 2024 and beyond,” the analyst further wrote.

TD Cowen appears at Domino's Pizza
Analyst andrew charles While maintaining a buy rating, the company raised its price target from $550 to $580.

Management attributed the strong first quarter to its “loyalty program, which was revamped in September.” Charles said this led to an increase in both new and discrete customers. “Management, in particular, noted its greatest strength among low-income consumers, an important dynamic given the challenging context of quick-service restaurants with low-income consumers.” he added.

“After ending a successful emergency pizza promotion, management guided U.S. profits slightly lower in the second quarter (despite easier comparability and increased Uber contribution) and By emphasizing supply chain investments following a quarterly margin beat (despite increased traffic), we are positioning ourselves for continued winning in 2024 (and cheese prices are contained). ” the analyst further stated.

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Domino's Pizza Benchmark
Analyst tod brooks While raising the price target to $575, they reaffirmed their “buy” rating.

The revamped loyalty program and the launch of Uber Eats “led to our second consecutive quarter of positive transaction growth in both delivery and carry-out channels,” Brooks said. This resulted in Domino's posting U.S. same-store sales growth of 5.6%, beating the consensus of 4.0%, he added.

The analyst added, “The company delivered an operating margin of 19.4% (versus consensus 18.3%) due to improved profitability in both its U.S. company-operated stores (30bps above our expectations) and supply chain (60bps above our expectations). I was able to achieve this.”

domino pizza wedbush
Analyst Nick Setian It raised its price target to $575 from $520 and reiterated its outperform rating.

Setian said Domino's Pizza reiterated its 2024 growth outlook for global retail sales and U.S. same-store sales. “SSS growth in the second quarter is expected to be 'slightly below' the first quarter as the pizza emergency promotion ends, partially offset by continued growth in Uber's sales mix,” he said. ),” he added.

Analysts said there are several short- and medium-term deal drivers that could drive growth in the company's U.S. same-store sales.

domino pizza oppenheimer
Analyst brian bittner While maintaining the Outperform rating, the company raised its price target to $580 from $530.

“Impressive share gains drove SSS's beat (+5.6% vs. +4.2%E on the Street), with the upside driven entirely by traffic,” Bittner wrote in a note. He added that the company is likely to continue gaining market share as new drivers remain influential.

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The analyst also said that management's repeated statement that 2024 EBIT margin is “flat” appears “appropriately conservative.”

DPZ price action: Domino's Pizza shares were up 0.88% at $531.50 as of publication Tuesday.

Read next: Is a hawkish shift on inflation imminent? Wall Street analysts and traders brace for Fed impact

Photo: Provided by Domino's Pizza

Latest evaluation of DPZ

March 2022 loop capital downgrade buy possession
March 2022 guggenheim maintain neutral
March 2022 citygroup maintain neutral

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