Briefing.com uses cookies to store information on your computer that is essential to making the site work and to customizing the user experience. By using the site, you consent to the placement of these cookies. Read our cookie policy to learn more and how to withdraw your consent.     
You must subscribe to access archives older
than one year.
Take a free trial of Briefing In Play® now.
Subscribe Here
TERMS OF USE

The Briefing.com RSS (really simple syndication) service is a method by which we offer story headline feeds in XML format to readers of the Briefing.com web site who use RSS aggregators. By using Briefing.com’s RSS service you agree to be bound by these Terms of Use. If you do not agree to the terms and conditions contained in these Terms of Use, we do not consent to provide you with an RSS feed and you should not make use of Briefing.com’s RSS service. The use of the RSS service is also subject to the terms and conditions of the Briefing.com Reader Agreement which governs the use of Briefing.com's entire web site (www.briefing.com) including all information services. These Terms of Use and the Briefing.com Reader Agreement may be changed by Briefing.com at any time without notice.

Use of RSS Feeds:
The Briefing.com RSS service is provided free of charge for use by individuals, as long as the feeds are used for such individual’s personal, non-commercial use. Any other uses, including without limitation the incorporation of advertising into or the placement of advertising associated with or targeted towards the RSS Content, are strictly prohibited. You are required to use the RSS feeds as provided by Briefing.com and you may not edit or modify the text, content or links supplied by Briefing.com. To acquire more extensive licensing rights to Briefing.com content please review this page.

Link to Content Pages:
The RSS service may be used only with those platforms from which a functional link is made available that, when accessed, takes the viewer directly to the display of the full article on the Briefing.com web site. You may not display the RSS content in a manner that does not permit successful linking to, redirection to or delivery of the applicable Briefing.com web site page. You may not insert any intermediate page, “splash” page or any other content between the RSS link and the applicable Briefing.com web site page.

Ownership/Attribution:
Briefing.com retains all ownership and other rights in the RSS content, and any and all Briefing.com logos and trademarks used in connection with the RSS service. You are required to provide appropriate attribution to the Briefing.com web site in connection with your use of the RSS feeds. If you provide this attribution using a graphic we require you to use the Briefing.com web site logo that we have incorporated into the Briefing.com RSS feed.

Right to Discontinue Feeds:
Briefing.com reserves the right to discontinue providing any or all of the RSS feeds at any time and to require you to cease displaying, distributing or otherwise using any or all of the RSS feeds for any reason including, without limitation, your violation of any provision of these Terms of Use or the terms and conditions of the Briefing.com Reader Agreement. Briefing.com assumes no liability for any of your activities in connection with the RSS feeds or for your use of the RSS feeds in connection with your web site.

Briefing.com
Subscribers Log In
 
  • HOME
  • OUR VIEW
    • Page One
    • The Big Picture
  • ANALYSIS
    • Premium Analysis
    • Story Stocks
  • MARKETS
    • Stock Market Update
    • Bond Market Update
    • Market Internals
    • After Hours Report
    • Weekly Wrap
  • CALENDARS
    • Upgrades/Downgrades
    • Economic
    • Stock Splits
    • IPO
    • Earnings
    • Conference Calls
    • Earnings Guidance
  • EMAILS
    • Edit My Profile
  • LEARNING CENTER
    • About Briefing.com
    • Ask An Analyst
    • Analysis
    • General Concepts
    • Strategies
    • Resources
    • Video
  • COMMUNITY
    • Twitter
    • Facebook
    • LinkedIn
    • YouTube
    • Google+
  • SEARCH
Login | Archive | EmailEmail |
HOME > Analysis >Story Stocks >Domino's trades lower...
Story Stocks® Archive
Last Update: 16-Oct-18 09:26 ET
Domino's trades lower following Q3 results but long term outlook looks tasty (DPZ)

Domino's Pizza (DPZ 261.30, -11.64, -4.27%) is trading lower today after reporting Q3 earnings this morning. The company was founded in 1960. Since then it has become a leader in pizza delivery, with a significant business in carryout pizza. It has a very large international presence.

It ranks among the world's top public restaurant brands with more than 15,300 stores in over 85 international markets. Domino's had global retail sales of $12.2 bln in 2017, with more than $5.9 bln in the US and $6.3 bln internationally. These are retail sales at the store level which are not the same as reported sales for Domino's. Those are primarily made up of royalty/franchise fees. DPZ does operate company stores, but more than 97% of its locations are run by franchisees.

Domino's has made a big push to incorporate digital/online technology into the pizza ordering process with good success. In fact, more than half of all global retail sales in 2017 came from digital channels, primarily online ordering and mobile apps.

In the US, Domino's generates over 60% of sales via digital channels and has produced several innovative ordering platforms, including Google Home, Facebook Messenger, Apple Watch, Amazon Echo, Twitter, and text message. In late 2017, Domino's began an industry-first test of self-driving vehicle delivery with Ford and in April 2018, it launched Domino's HotSpots, featuring over 200,000 non-traditional delivery locations including parks, beaches, local landmarks, and other gathering spots.

Turning to the Q3 results, non-GAAP EPS rose 65% yr/yr to $1.95, which was much better than market expectations. Revenue rose 22.1% yr/yr to $786.0 mln, which was a bit below expectations. The company also had Q3 global net store growth of 232 stores, comprised of 173 net new international stores and 59 net new domestic stores.

In terms of domestic same store sales, they came in at a robust +6.3% (+4.9% company-owned, +6.4% franchise) while international comps came in at +3.3% (this excludes FX impact). These were good comps considering DPZ was lapping some real good comps in 3Q17 at +8.4% for domestic and +5.1% for international.

In sum, while DPZ initially traded lower after reporting results, the stock has moved off its lows. The revenue miss seems to be a concern for investors. Also, its Q3 domestic comps of +6.3% were quite good, but shy of the +6.9% comps in Q2 and the +8.3% comps in Q1. Perhaps this downward trend is weighing on the stock a bit as well.

The stock was trending lower in the past couple of weeks heading into this report. However, it may just be due to weakness in the overall market rather than a concern about the Q3 results. Despite the Q3 hiccup, the overall growth picture for DPZ looks quite good. On a final note, DPZ is probably benefiting from all the turmoil over at Papa John's (PZZA) following controversial comments by its founder and his removal.

Domino's Pizza (DPZ 261.30, -11.64, -4.27%) is trading lower today after reporting Q3 earnings this morning. The company was founded in 1960. Since
 
Add this to my Page Alerts.
MARKET PLACE
SPONSORED LINKS
 
  Follow Us On Linkedin  
 
 
LOGIN

CONTACT US
Support
Sitemap
PREMIUM SERVICES
Take a Tour
Compare Services
Request a Demo
INSTITUTIONAL SALES
ADVERTISING

CONTENT LICENSING

EMAILS & NEWSLETTERS
ABOUT US
Our Experts
Management Team

COMMUNITY
MEDIA
Events
News
Awards
PRIVACY STATEMENT
Cookie Policy
Reader Agreement
Policies
Disclaimer
Copyright © Briefing.com, Inc. All rights reserved.
Close
You must log in or register to access this area.
Tip of the Day
Virtual Url Page Popup