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Domino's Shares Gain 27% YTD: Will the Bull Run Continue?
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Domino's Pizza, Inc. (DPZ - Free Report) is poised to benefit from its strong digital ordering system, robust international expansion and franchising initiatives. Also, the company’s re-modelling efforts have gained momentum, leading to sales improvement over the past few quarters.
Notably, shares of Domino's have outperformed the industry so far this year. The stock has gained 26.7% against the industry’s decline of 8.9%. Moreover, an upward revision in earnings estimates for 2020 reflects analysts’ optimism in the company’s growth potential. Over the past 60 days, the Zacks Consensus Estimate for its 2020 earnings has moved up 6.2% to $10.93 per share.
Factors Driving Growth
Domino’s continues bolstering sales through regular limited time offers (LTO). Notably, the company is on track to convert all of its restaurants into the “Pizza Theater” prototype, which offers a comfy lobby, open-area viewing of the food preparation process and the ability to track carryout orders electronically on a lobby screen. Its remodeling initiative is anticipated to continue enhancing its potential as a brand and augment guest experience.
The company is also investing heavily in technology-driven initiatives like digital ordering to boost sales. It has started driverless pizza delivery services in Houston, TX. To this end, the company has partnered with Nuro — a robotic company for the delivery services. The extended ways to order a pizza has thus kept Domino’s at the forefront of digital ordering and customer convenience. Meanwhile, Domino’s digital loyalty program -- Piece of the Pie Rewards – continues to contribute significantly to traffic.
Since Domino’s generates a chunk of revenues from outside the United States, the company is committed to accelerating presence in high-growth international markets to boost business. The company’s international growth continues to be strong and diversified across markets, courtesy of exceptional unit level economics.
Notably, first-quarter 2020 marked the 105th consecutive quarter of positive same-store sales in its international business. During the quarter, international comps benefited from increase in orders. Improvement in comps can be attributed to ticket growth.
Apart from the established markets such as Canada, Japan, Italy, the U.K., Ireland, Switzerland and South Korea, the emerging markets like Brazil, China, India, Indonesia and Turkey have been seeing solid growth.
Other better-ranked stocks in the Retail-Wholesale sector are Sprouts Farmers Market, Inc. (SFM - Free Report) , Wingstop Inc. (WING - Free Report) and Yum China Holdings, Inc. (YUMC - Free Report) . Sprouts Farmers sports a Zacks Rank #1, while Wingstop and Yum China carry a Zacks Rank #2.
Sprouts Farmers has a three-five year earnings per share growth rate of 4.4%.
Earnings in 2020 for Wingstop are expected to surge 39.7%.
Yum China has a trailing four-quarter positive earnings surprise of 62.9%, on average. The company’s earnings beat the Zacks Consensus Estimate in the last four quarters.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Domino's Shares Gain 27% YTD: Will the Bull Run Continue?
Domino's Pizza, Inc. (DPZ - Free Report) is poised to benefit from its strong digital ordering system, robust international expansion and franchising initiatives. Also, the company’s re-modelling efforts have gained momentum, leading to sales improvement over the past few quarters.
Notably, shares of Domino's have outperformed the industry so far this year. The stock has gained 26.7% against the industry’s decline of 8.9%. Moreover, an upward revision in earnings estimates for 2020 reflects analysts’ optimism in the company’s growth potential. Over the past 60 days, the Zacks Consensus Estimate for its 2020 earnings has moved up 6.2% to $10.93 per share.
Factors Driving Growth
Domino’s continues bolstering sales through regular limited time offers (LTO). Notably, the company is on track to convert all of its restaurants into the “Pizza Theater” prototype, which offers a comfy lobby, open-area viewing of the food preparation process and the ability to track carryout orders electronically on a lobby screen. Its remodeling initiative is anticipated to continue enhancing its potential as a brand and augment guest experience.
The company is also investing heavily in technology-driven initiatives like digital ordering to boost sales. It has started driverless pizza delivery services in Houston, TX. To this end, the company has partnered with Nuro — a robotic company for the delivery services. The extended ways to order a pizza has thus kept Domino’s at the forefront of digital ordering and customer convenience. Meanwhile, Domino’s digital loyalty program -- Piece of the Pie Rewards – continues to contribute significantly to traffic.
Since Domino’s generates a chunk of revenues from outside the United States, the company is committed to accelerating presence in high-growth international markets to boost business. The company’s international growth continues to be strong and diversified across markets, courtesy of exceptional unit level economics.
Notably, first-quarter 2020 marked the 105th consecutive quarter of positive same-store sales in its international business. During the quarter, international comps benefited from increase in orders. Improvement in comps can be attributed to ticket growth.
Apart from the established markets such as Canada, Japan, Italy, the U.K., Ireland, Switzerland and South Korea, the emerging markets like Brazil, China, India, Indonesia and Turkey have been seeing solid growth.
Zacks Rank & Other Key Picks
Domino’s currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other better-ranked stocks in the Retail-Wholesale sector are Sprouts Farmers Market, Inc. (SFM - Free Report) , Wingstop Inc. (WING - Free Report) and Yum China Holdings, Inc. (YUMC - Free Report) . Sprouts Farmers sports a Zacks Rank #1, while Wingstop and Yum China carry a Zacks Rank #2.
Sprouts Farmers has a three-five year earnings per share growth rate of 4.4%.
Earnings in 2020 for Wingstop are expected to surge 39.7%.
Yum China has a trailing four-quarter positive earnings surprise of 62.9%, on average. The company’s earnings beat the Zacks Consensus Estimate in the last four quarters.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>