Domino's Pizza's (DPZ.US) share price is up nearly 10% today despite mixed financial results. Earnings per share fell, while revenue rose slightly above Wall Street expectations:
Earnings per share (EPS): $2.79 vs. $2.97 forecast ($3.24 in Q3 2021)
Revenue: $1.07 billion vs. $1.06 billion forecasts
- Net income fell to $100.5 million vs. $120.4 million in the year-ago quarter ($3.24 per share). According to management, the decline is due to higher income tax provisions and lower income from operations;
- Domino's CEO Russell Weiner indicated that the company intends to raise the price of its popular offer' mix-and-match deal' from $5.99 to $6.99 effective October 17. The previous increase in the price of the deals in the supply proved beneficial to the company. Previously, the company had offered a 20% discount on such orders, as a gesture of 'inflationary solidarity' with consumers, which drove sales. The company maintained its previous forecast for rising food costs in the range of 13% to 15% annually. However, management reported a 1.8% decline in sales at branches outside the United States, after excluding the impact of foreign exchange;
- The company reported the sale of 114 company-owned stores in Utah and Arizona to franchisees for $41.1 million. Domino's expects first profits from the transaction in the fourth quarter of the year and ultimately plans to reduce the cost of maintaining the facilities;
- The company expects higher revenue from on-premises orders, driven by the absence of pandemic restrictions and cost-cutting by customers. Currently, 1/3 of orders are fulfilled via paid delivery.
Domino's Pizza on Oct. 11 announced that it will pay a quarterly dividend of $1.10 per share to holders of shares before Dec. 15 of this year. The dividend is scheduled to be paid on December 30, 2022.
Domino's Pizza (DPZ.US) shares, D1 interval. The company's shares have been in a strong downtrend since the beginning of the year. The RSI indicator has risen to above 50 points, however, it still does not indicate overbought levels. The main resistance in the short term may be the levels at $360, where the SMA50 runs. A drop in sentiment on the indexes, however, could trigger a pullback toward local minima at $300. Source: xStation5
