Domino's drops as slower sales growth drives less robust outlook

Domino’s Drops After Pizza Maker Offers Less Robust Outlook

Domino’s Drops After Pizza Maker Offers Less Robust Outlook

Domino's Pizza also announced boardroom approval for a $1 billion United States dollars share buyback plan, which helped DPZ stock recover from earlier losses. At the time of writing, this stock's 50-day Moving Average stands at $239.89, while the 200-day Moving Average of this stock is now $259.32.

Domestic same-store sales were up 2.4% rather than the 2.6% expected.

The slowing growth has anxious Wall Street, which has sent Domino's stock down 13% over the past year.

In the early 2000's the company saw sluggish sales due to customers disliking the taste of the pizza. Domino's Pizza's payout ratio is now 30.88%. Preceding that transaction, on May 16 Company's Chief Executive Officer sold 10,000 at a price of 279.19, making the whole transaction's value amount to 2,791,867.

Domino's Pizza stock opened at $242.21 on Tuesday. All together, they are the legal holders of 41.44M shares.

With a market cap of $9.48 billion, Domino's shares were down 4.11% at $232.26 on Tuesday morning.

Domino's Pizza sank as much as 7% in early Tuesday trading after the pizza chain's third-quarter report revealed slowing sales growth.

Diluted EPS was $2.05 for the third quarter of 2019, up 5.1% over the prior year quarter, primarily resulting from higher income from operations, offset in part by a higher effective tax rate.

It said it now expects same-store sales at its USA stores to rise 2 percent to 5 percent and its global segment to grow 1 percent to 4 percent in two to three years, compared with a previous 3 percent to 6 percent growth at either segment over three to five years.

"The lower growth targets and shorter time frame (two-to-three years versus three-to-five) are an acknowledgement that structural factors fundamentally changed the rate and composition of Domino's Pizza's growth", wrote Bernstein analysts. It previously anticipated 8% to 12% sales growth over the next three to five years. Finally, Advisory Services Network LLC lifted its position in Domino's Pizza by 791.4% in the second quarter. The company has managed to achieve an average true range (ATR) of 5.15.

Domino's on Tuesday reported $820.8 million in revenue for its fiscal third quarter ended September 8, up about 4% compared with past year but weaker than predictions from Wall Street analysts, according to FactSet.

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