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Domino's Posts Preliminary Q1 Results, Revokes 2020 Outlook

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Domino's Pizza Inc (DPZ - Free Report) announced preliminary first-quarter fiscal 2020 results. Given the unprecedented impact of coronavirus (COVID-19) on its business and the Retail - Restaurants industry, the company has also withdrawn its fiscal 2020 guidance. Following the announcement of unaudited sales and unit development results, shares of the company slid 2.4% on Mar 30.

A glimpse of the company’s price trend reveals that Domino's has outperformed its industry in a year’s time. The stock has gained 18.1% compared with the industry’s decline of 22.5%.

Preliminary Fiscal Q1 Results

Domino's anticipates preliminary Global retail sales (including total sales of franchise and company-owned units) to grow 4.4% year over year in fiscal first quarter. Preliminary comps at international stores and domestic stores are expected to rise 3.9% and 4.9%, year over year, respectively. Excluding foreign currency impact, global retail sales are expected to increase 5.9%.

The company anticipates fiscal first-quarter system-wide sales of U.S. company-owned stores, U.S. franchise stores, U.S. stores and International stores (excluding foreign currency impact) to rise 3.9%, 1.5%, 1.6% and 1.5%, year over year, respectively.

Coming to the international market closures resulting from COVID-19 outbreak, the company partially closed approximately 1,400 restaurants. With 14 international markets closed and 23 international markets partially closed, the company currently operates in 17,089 stores, worldwide.

2020 Outlook Withdrawn

The devastating impact of the COVID-19 outbreak on the global economy has compelled Domino's to withdraw its previously announced 2020 guidance. Nonetheless, the company is  focused on execution, service and value as it continues to navigate through the headwinds created by COVID-19.

Zacks Rank & Key Picks 

Domino's currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks worth considering in the same space include Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) , BJ's Restaurants, Inc. (BJRI - Free Report) and Chuy's Holdings, Inc. . Cracker Barrel sports a Zacks Rank #1, while BJ's Restaurants and Chuy's Holdings carry a Zacks Rank #2 (Buy). 

Cracker Barrel has trailing four-quarter positive earnings surprise of 7.8%, on average. The company’s earnings beat the Zacks Consensus Estimate in all of the last four quarters.

BJ's Restaurants has an expected three-five year earnings per share growth rate of 15%.

2021 earnings for Chuy's Holdings are expected to rise 10.5%.

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