Domino's Pizza Gets Mixed Reception From Analysts After Earnings Report

Domino's beats consensus estimates of its fourth-quarter earnings. Analysts' reactions to the report are mixed. The stock eases a bit on Friday after leaping 26% on Thursday.
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Domino’s Pizza  (DPZ) - Get Report shares were lower Friday after the chain's fourth-quarter report beat consensus estimates but analysts' reactions to the numbers were mixed.

Domino’s shares at last check were 2.3% lower at $364.57. The stock had jumped 26% on Thursday. 

Wedbush maintained its outperform rating with a $410 price target. 

Baird analysts affirmed an outperform rating on the Ann Arbor, Mich., company while raising their price target to $400 from $330. RBC Capital similarly maintained an outperform rating and $400 price target.

Analysts at Morgan Stanley kept an overweight rating and $388 target.

UBS analysts maintained a neutral rating and $375 price target on Domino's. And Deutsche Bank affirmed a sell rating and $276 target. 

Baird's David Tarantino says investor sentiment can remain positive as the company shows itself able to sustain solid top-line momentum in coming quarters.

Fourth-quarter earnings were $3.13 a share, up 20% from the year-earlier quarter, as revenue rose 6.3% to $1.15 billion.

Analysts surveyed by FactSet were expecting the company to report earnings of $2.98 a share on revenue of $1.13 billion.

Domino's reported that same-store sales increased 3.4% in the U.S. and 1.7% internationally. The U.S. comps topped analysts' expectations of 2.3%, the first time in more than a year that the metric beat forecasts.

“Our relentless focus on our customers, our franchisees and the long-term growth and profitability of the Domino's business model helped us deliver a solid 2019 in the face of unique competitive headwinds,” Domino's Pizza Chief Executive Ritch Allison said in a statement.