1/15/2024 0 Comments Dominos stock valuation![]() ![]() This does not include entering new markets, like Lithuania in Q3, nor does it include smaller international markets. As shown above, the company highlighted the potential for ~13,800 stores in its top-15 international markets, pointing to more than 4,500 more stores that could be added in these markets alone. Looking at international markets, the opportunity continues to be significant relative to what Domino's believes its potential could be long-term. So, while the 1.9% decline in comp sales is certainly an ugly headline number, the 15.6% comp sales growth figure remains impressive on a two-year stacked basis. Given the added staffing headwinds that impacted store hours and service challenges, it would have been nearly impossible to post positive growth. This is because Domino's posted its best quarter of comp sales in over 15 years in Q3 2020 (17.5%). This partially offset weaker than planned store growth than planned in the United States, impacted by construction, equipment, and inspection delays.įrom a comp sales standpoint, it's important to note that while Domino's 41-quarter streak of positive comp sales ended in the United States, this was mostly unavoidable, given that the company was coming up against near-insurmountable comps. Domino's finished the quarter with over 18,000 stores, opened 278 stores internationally in Q3, and 892 stores internationally on a trailing-four-quarter basis. ![]() These results were helped by strong unit growth. Q3 2018 levels and beating last year's record Q3 revenue of $968 million. (Source: Company Filings, Author's Chart)Īs shown above, Domino's has continued to see steady revenue growth relative to pre-COVID-19 levels, with revenue up 27% vs. However, while sales performance was strong, staffing continues to be a headwind, which resulted in Q3 breaking a 41-quarter streak of positive comp sales growth in the U.S. This was driven by a significant increase in the company's store count internationally and strong same-store sales growth in international markets, driven by order growth and the resumption of normal store hours following COVID-19 related impacts. So, while I see Domino's as a top-5 name in the restaurant space, I don't see any way to justify paying above $530.00 for the stock.ĭomino's released its Q3 results in mid-October and reported revenue growth and global retail sales growth of 3% and 10%, respectively. However, while international remains a huge growth opportunity, the stock looks nearly fully priced short-term, trading at 34x FY2022 earnings estimates. This has pushed the stock's year-to-date return above 37%, outperforming the restaurant industry group by nearly 2000 basis points. However, Domino's Pizza ( NYSE: DPZ) has continued to outperform its peers, helped by a solid Q3 report with impressive growth internationally. It's been a tough H2 for the restaurant industry, with staffing shortages persisting and inflationary pressures worse than expected. If your legitimate post is deleted by robots, we apologize you are welcome to comment in the Weekly Megathread or any other post's comments in the meantime.Justin Edmonds/Getty Images Entertainment It fluctuates depending on current spam activity. We require a minimum account age to post as an anti-spam measure. Site-wide rules regarding spam and following U.S. Other low quality or self-promoting posts may be removed at the moderators' discretion. No personal attacks or derogatory language. No soliciting direct or personal messages to distribute tools or products through other channelsīe courteous. No posts about chat groups, discord links, etc. No promotion of commercial services (exception for high quality sponsored articles)Īccounts which only pump a single stock across Reddit will have posts removed as spam. ![]() Posts must be relevant to Value Investing No posts about cryptocurrency or blockchain. Visit our Subreddit Wiki for more info and links to get started! Visit our Archive to keep track of our goldmine of older posts! It's the value investing community on Reddit, and is for more advanced folk. ![]() This is a subreddit dedicated to Value Investing. ![]()
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