• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Domino’s Pizza stock crashes as American consumer struggles with rising food prices

by July 18, 2024
written by July 18, 2024

Domino’s Pizza (DPZ) stock price is down over 13% during trading today as investors absorb the shocking earnings report.

The company reported an EPS beat and almost achieved the sales targets. However, a weak guidance and suspension of new store opening targets has investors worried.

The EPS clocked in at $4.03 beating expectations by 9.6% while revenue of $1.1 billion fell just below analyst estimates.

The company’s free cash flow was up 23.1% from the previous quarter at $127.2 million. Its same store sales rose, though came in slightly below expectations.

Even though the results don’t look all that bad, it is the forecast that has spooked investors. It warned that same store sales are likely to slow down in the coming quarters as well.

New stores coming up

The problems have prompted the company to reconsider its new store opening plans. The target of 1100 new net stores in the next 5 years stands suspended while the company figures out what to do with the slowing sales.

Domino’s international operations were supposed to drive long-term growth in the company but the concerning numbers and weak forecast is casting doubts over that strategy. Jim Sanderson of Northcoast Research, says:

That’s a little bit of a concern because international unit growth was a kind of a key component of the company’s long-term growth strategy.

Inflation hurting food businesses

Domino’s popularity among consumers is in question now that people have demonstrated they clearly value saving money over food.

Even though inflation numbers are improving in the US and retail numbers show the US consumer is going strong, there is no guarantee people will give away their money for fast food with the same ease.

The company knows this and that is why it worked on offering value to the customer. It not only refreshed its loyalty program but also launched other offers to attract food lovers.

One of these offers is the boost weak, where the company offers discounts throughout the week.

In the coming quarters, we can expect one boost week per quarter as per the management.

The management is also happy with the Hungry for MORE strategy, which is aimed at aggressive growth and building a legacy of success. CEO Russell Weiner says:

Our year-to-date performance demonstrates that our Hungry for MORE strategy is off to a great start, having an immediate impact on sales and profits.

Despite the optimism, investors have to wonder why new store openings and sales are going down if the company believes its growth plans are intact?

If it is inflation and spending habits, the company may be able to improve things down the road through offers like boost week.

But if people have found alternatives that Domino’s can’t beat on pricing, it might just be that only the die hard Domino’s fans keep their loyalty.

No one can blame the consumer for saving money in this tough economic environment.

The post Domino’s Pizza stock crashes as American consumer struggles with rising food prices appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Agenus stock plummets over 50% as FDA rejects accelerated approval for BOT/BAL cancer therapy
next post
Ken Griffin’s $44.6 million stegosaurus skeleton acquisition sets auction record

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Lineage’s Nasdaq debut sees 5% rise, raising $4.4 billion amid aggressive growth strategy

    July 25, 2024
  • US bombers strike Yemen weapons facilities controlled by Houthi forces

    October 17, 2024
  • Senate to debate Trump’s $9B clawback bill after dramatic late-night votes

    July 16, 2025
  • New poll reveals which Trump policies Americans love and hate

    February 12, 2025
  • Ripple and Tron: Ripple is back at the weekly open price

    August 1, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,603)
  • Investing (634)
  • Stock (867)

Latest Posts

  • FTSE All-Share Index Live: Tech Companies Extend Gains

    July 29, 2024
  • Trump campaign clarifies after candidate jokes about shooting ‘through the fake news’ in Pennsylvania

    November 3, 2024
  • Trump meets Ukraine’s Zelenskyy at Trump Tower, says Russia’s war must end with ‘fair deal’

    September 27, 2024

Recent Posts

  • If Republicans were telling the truth about supporting abortion, Roe v Wade would be intact today

    January 22, 2025
  • Trump needs ‘time to review’ SCOTUS decision to uphold TikTok ban, teases action in ‘not too distant future’

    January 17, 2025
  • GOP lawmakers pledge to investigate Biden’s last-minute pardons: ‘Call them all before Congress’

    January 20, 2025

Editor’s Pick

  • RNC brings on new senior leadership to ‘work around the clock’ to support Trump agenda, elect Republicans

    February 12, 2025
  • Trump signs order instructing DOGE to massively cut federal workforce

    February 12, 2025
  • Support for Taylor Swift’s get-out-the-vote effort drops sharply among particular voting bloc: poll

    September 19, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock