We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Domino's Pizza (DPZ) Gains 30% in a Year: More Room to Run?
Read MoreHide Full Article
Domino's Pizza, Inc. (DPZ - Free Report) gains from strong international presence, sales-building initiatives and franchising strategies. As a result, the company’s shares have gained 29.5% in a year’s time, outperforming the industry’s 5.5% growth. Moreover, earnings estimates for the current year have risen 0.2% over the past 30 days, reflecting analysts’ optimism surrounding the stock’s prospects.
Let’s take a look at the factors working in favor of the Zacks Rank #2 (Buy) company.
Catalysts Driving Growth
Domino’s, one of the largest pizza chains worldwide, is poised to grow on its strong brand presence, robust international expansion and sales-boosting initiatives. The company’s focus on remodeling its restaurants and sales-building initiatives through regular limited time offers (LTO) are driving the top line. The company is also investing heavily in technology-driven initiatives, like digital ordering, to boost sales. Meanwhile, its digital loyalty program — Piece of the Pie Rewards — continues to contribute extensively to traffic.
The company also continues to expand in high-growth international markets as a major chunk of its revenues comes from outside the United States.The company sees robust international growth on exceptional unit level economics. Meanwhile, we believe that Domino's solid brand position might continue to boost sales in the upcoming quarters.
Notably, the third quarter of 2018 marked the 99th consecutive quarter of positive same-store-sales in its international business. Globally, Domino’s opened 829 and 173 net stores in 2017 and third-quarter 2018, respectively.The company has enhanced its brand strength through marketing affiliations with the likes of Coca-Cola.
In the third quarter of 2018, revenues improved 22.1% year over year to $786 million on the back of increased domestic franchise revenues, domestic company-owned store, international franchise revenues and store count growth. Moreover, adjusted earnings of $1.95 per share increased 53.5% on a year-over-year basis driven by higher net income and lower diluted share count as a result of share repurchases. Moreover, the company’s major focus on re-franchising minimizes its capital requirements and facilitates earnings per share growth and ROE expansion.
Meanwhile, the Zacks Consensus Estimate for 2018 earnings is pegged at $8.45, marking a growth of 58.2% year over year.
Habit Restaurants reported better-than-expected earnings in two of the trailing three quarters, the average being 66.7%.
BJ's Restaurants has an expected earnings growth rate of 66.7% for the current year.
Darden Restaurants has an expected earnings growth rate of 17.3% for the current year.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it. See them today for free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Domino's Pizza (DPZ) Gains 30% in a Year: More Room to Run?
Domino's Pizza, Inc. (DPZ - Free Report) gains from strong international presence, sales-building initiatives and franchising strategies. As a result, the company’s shares have gained 29.5% in a year’s time, outperforming the industry’s 5.5% growth. Moreover, earnings estimates for the current year have risen 0.2% over the past 30 days, reflecting analysts’ optimism surrounding the stock’s prospects.
.jpg)
Let’s take a look at the factors working in favor of the Zacks Rank #2 (Buy) company.
Catalysts Driving Growth
Domino’s, one of the largest pizza chains worldwide, is poised to grow on its strong brand presence, robust international expansion and sales-boosting initiatives. The company’s focus on remodeling its restaurants and sales-building initiatives through regular limited time offers (LTO) are driving the top line. The company is also investing heavily in technology-driven initiatives, like digital ordering, to boost sales. Meanwhile, its digital loyalty program — Piece of the Pie Rewards — continues to contribute extensively to traffic.
The company also continues to expand in high-growth international markets as a major chunk of its revenues comes from outside the United States.The company sees robust international growth on exceptional unit level economics. Meanwhile, we believe that Domino's solid brand position might continue to boost sales in the upcoming quarters.
Notably, the third quarter of 2018 marked the 99th consecutive quarter of positive same-store-sales in its international business. Globally, Domino’s opened 829 and 173 net stores in 2017 and third-quarter 2018, respectively.The company has enhanced its brand strength through marketing affiliations with the likes of Coca-Cola.
In the third quarter of 2018, revenues improved 22.1% year over year to $786 million on the back of increased domestic franchise revenues, domestic company-owned store, international franchise revenues and store count growth. Moreover, adjusted earnings of $1.95 per share increased 53.5% on a year-over-year basis driven by higher net income and lower diluted share count as a result of share repurchases. Moreover, the company’s major focus on re-franchising minimizes its capital requirements and facilitates earnings per share growth and ROE expansion.
Meanwhile, the Zacks Consensus Estimate for 2018 earnings is pegged at $8.45, marking a growth of 58.2% year over year.
Other Stocks to Consider
Other top-ranked stocks in the Retail-Restaurants industry are The Habit Restaurants, Inc. , BJ's Restaurants, Inc. (BJRI - Free Report) and Darden Restaurants, Inc. (DRI - Free Report) . While Habit Restaurants sports a Zacks Rank #1 (Strong Buy), BJ's Restaurants and Darden Restaurants carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Habit Restaurants reported better-than-expected earnings in two of the trailing three quarters, the average being 66.7%.
BJ's Restaurants has an expected earnings growth rate of 66.7% for the current year.
Darden Restaurants has an expected earnings growth rate of 17.3% for the current year.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>