Domino’s Pizza (NYSE:DPZ) has announced stronger-than-anticipated earnings for the first quarter. Reporting earnings of $3.58 per share, marking a 22.2% year-over-year increase, the pizza chain surpassed Street estimates of $3.41 per share. Additionally, Domino’s recorded Q1 revenues of $1.08 billion, reflecting a 5.9% year-over-year increase, consistent with estimates. The company also achieved global retail sales of $4.36 billion, demonstrating a 7.3% year-over-year growth.
In the first quarter, DPZ saw a 5.6% growth in same-store sales in the U.S., while international same-store sales increased by 0.9%.
Looking ahead to the long term, between 2024 and 2028, Domino’s anticipates its global retail sales to grow by over 7% annually. Additionally, the company has projected its income from operations to increase by more than 8% yearly during this period.
Domino’s Dividends and Stock Buyback
The company’s Board of Directors has declared a quarterly dividend of $1.51 per share on its outstanding common stock. This dividend is payable to shareholders of record as of June 14 and will be distributed on June 28, 2024.
Furthermore, during the first quarter, Domino’s repurchased 56,372 shares worth $25 million. As of March 24, the company had a total remaining authorized amount of $1.12 billion for stock buybacks.
Is DPZ a Good Stock to Buy?
Analysts are cautiously optimistic about DPZ stock, with a Moderate Buy consensus rating based on 15 Buys, 10 Holds, and one Sell. Year-to-date, DPZ has increased by more than 20%, and the average DPZ price target of $506.04 implies an upside potential of 1.4% from current levels. These analyst ratings are likely to change following DPZ’s Q1 results today.
