Domino’s Pizza Inc (NYSE:) delivered a mixed bag of results in their recent earnings report. While the company exceeded earnings per share (EPS) expectations, it fell short on same-store sales growth. The world’s largest pizza chain also announced a significant reduction in its international store expansion plans due to challenges in key markets, leading to a 14% drop in its stock price.
Domino’s Exceeds EPS and Revenue Estimates, But Misses Sales Growth Targets
Domino’s reported an EPS of $4.03, surpassing analysts’ estimates of $3.68. The company’s total revenue for the quarter was $1.10 billion, meeting expectations. However, U.S. same-store sales growth was slightly below expectations at 4.8%, while international same-store sales growth fell short at 2.1%.
Despite beating earnings estimates, Domino’s announced a reduction in its international expansion plans, cutting its target for new international outlets by 275 stores.
Domino’s Stock Plummets After Q2 Results
Following the earnings report, Domino’s stock price dropped to $407.53, erasing a significant portion of its year-to-date gains of 15.52%. The company’s current market capitalization is $16.508 billion, with a trailing P/E ratio of 30.91 and a forward P/E of 29.67.
Analyst sentiment remains cautiously optimistic, with price targets ranging from $470.00 to $626.00 and a consensus recommendation of “Buy.”
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