Australia’s Domino’s Pizza Enterprises (ASX:DMP) shares rose about 10% in the morning, on the back of a strong sales report from American brand owner, Domino’s Pizza (NYSE:DPZ).
Queensland-based Domino’s Pizza Enterprises is the largest operator of Domino’s Pizza brand restaurants outside the U.S. In addition to Australia and New Zealand, it also operates in Europe and Asia.
The American brand owner reported third-quarter revenue that exceeded analysts’ expectations. Moreover, it revealed strong international sales. The strong U.S. result saw the Australian market throw its support behind the local outfit, Domino’s Pizza Enterprises.
Domino’s Pizza Enterprises share price prediction
Domino’s Pizza Enterprises shares have a long way to go if they are to regain lost ground, as the stock is still down more than 55% year-to-date. According to TipRanks’ analyst rating consensus, Domino’s Pizza Enterprises stock is a Moderate Buy based on seven Buys and three Holds. The average Domino’s Pizza Enterprises share price prediction of AU$83.41 indicates over 47% upside potential.
Domino’s Pizza Enterprises insiders, such as directors and executives, have kept faith in the stock even after it declined sharply from where it began the year. TipRanks’ Insider Trading Activity shows that Insider Confidence Signal is currently Positive. Domino’s corporate insiders have purchased AU$41,700 worth of the company’s shares in the past three months.
Closing thoughts
For investors with a long-term view, analysts believe that the pullback in Domino’s Pizza Enterprises shares this year presents an opportunity to buy the dip. As the U.S. brand owner’s sales results have shown, Domino’s Pizza outlets remain favourites for restaurant dinners.
