Shares of Domino’s Pizza (NYSE: DPZ) sunk over 8% in morning trading after the pizza company’s outlook left investors disappointed. The company slashed its two-to-three-year sales outlook to a range of 4% to 8% growth from a prior estimate of 6% to 10%, citing macroeconomic headwinds that are particularly impacting its pizza delivery business in the U.S. The global net unit growth estimates were also reduced to between 5% and 7% over the two-to-three-year period versus a forecast of 6% to 8% earlier.
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Revenues increased by 3.6% year-over-year in Q4 to $1.39 billion falling short of analysts’ expectations of $1.44 billion. Same-store sales in the U.S. increased by 0.9% in Q4 but declined by 0.8% in FY22.
Adjusted earnings came in at $4.43 per share in Q4 versus $4.25 in the same period last year and exceeding analysts’ estimates of $3.96. Moreover, DPZ raised its quarterly dividend by 10% to $1.21 per share for shareholders of record as of March 15 to be paid on March 30, 2023.
Overall, Wall Street analysts are cautiously optimistic about DPZ stock with a Moderate Buy consensus rating based on seven Buys, five Holds and one Sell.
