![]() The stock’s high operating P/E ratio makes sense given a resumption of strong EPS growth next year. Dividends are also expected to increase into 2023. On valuation, analysts at BofA see earnings per share falling slightly this year but then rebounding sharply in 20. dollar and high competition in the fast-food pizza industry. Downside risks include a continued strong U.S. Moreover, a strong worldwide presence helps to diversify operations. Ahead of earnings this week, just 4.2% of shares are short.ĭomino’s has significant upside potential with falling year-on-year wage growth gains for low-end jobs along with improving supply chains across the globe. The Michigan-based $11.3 billion market cap Hotels, Restaurants & Leisure industry company within the Consumer Discretionary sector trades at a high 24.6 trailing 12-month GAAP price-to-earnings ratio and pays a small 1.4% dividend yield, according to The Wall Street Journal. The company has been benefitting from a steadily growing online/digital ordering mix that currently represents over 60% of domestic orders and has a long runway for growth. DPZ's system is more than 97% franchised and 63% of stores are located internationally. 1 pizza delivery company in the world with roughly 16,000 stores in 50 states and more than 70 countries. Industry Fundamental Trends: Falling Labor Wage Growth, Easing Commodity Prices Expected, Extremely Favorable FAH-FAHM SpreadĪccording to Bank of America Global Research, Domino's Pizza ( NYSE: DPZ) is the No. One popular pizza company kicks off earnings season this week. Finally, the all-important food at home minus food away from home (FAH-FAFH) remains hugely in favor of restaurants. Is the tide turning on rising labor costs and soaring commodity prices? It might just be so.Īccording to Bank of America, the year-on-year change in wage growth for food service workers peaked at +15% earlier this year and has since fallen to just +8% as of June.Īs for wholesale food prices, those are expected to be in outright decline, according to Bloomberg data. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |