Domino's Pizza Inc. Chief Financial Officer Jeff Lawrence told analysts on the company's earnings call that its board has approved a new share buyback program of up to $1 billion. Lawrence said the company returned $26.9 million to shareholders in its fiscal third quarter in form of a 65 cents quarterly dividend. "On average over the last 12 months we have not only generated more than $1 million per day in free cash flow but when you add our share repurchases and dividends together we have also returned more than $1 million per day to our shareholders," he said, according to a FactSet transcript. Shares were down 2.9% and have lost 5% in 2019, while the S&P 500 has gained 16%.
After a third-quarter earnings report that was softer than expected, the pizza chain issued new sales growth targets for the next two to three years.
U.S. stocks fell at the opening bell on Tuesday after the Trump administration put eight Chinese companies on a blacklist, threatening to overshadow trade negotiations at the end of the week. The S&P 500 fell 0.7% to around 2,918. The Dow Jones Industrial Average shed 237 points, or 0.9%, to around 26,241. Nasdaq Composite retreated 0.8% to 7,893. Chinese Vice Premier Liu He is set to visit the U.S. on Oct. 10-11. But Bloomberg News reported the Commerce Department would put several Chinese companies on the so-called entity list, raising worries the measures could set a bad tone for upcoming trade talks. In company news, shares of Domino's Pizza Inc. held their ground even after the company posted weaker-than-expected earnings for its third quarter.
The U.S. moved to increase the number of Chinese companies on an export blacklist, which could further hurt relations between the two countries and set back tariff discussions.
Domino's Pizza Inc. shares slid 4% in premarket trade Tuesday, after the company posted weaker-than-expected earnings for its fiscal third quarter. Ann Arbor, Michigan-based Domino's said it had net income of $86.5 million, or $2.05 a share, in the quarter to Sept.8, up from $84.1 million, or $1.95 a share, in the year-earlier period. Revenue edged up to $820.8 million from $785.9 million. The FactSet consensus was for EPS of $2.07 and revenue of $823.0 million. U.S. same-store sales rose 2.4%, compared with a FactSet consensus for growth of 2.7%. The company unveiled a new set of performance estimates covering a two to three-year timeframe, which replaces prior guidance that took a three to five-year view. It said it expects global retail sales growth of 7% to 10% in two to three years, compared with a prior forecast of 8% to 12% growth over a three to five-year frame. It expects U.S. same-store sales growth of 2% to 5%, compared with 3% to 6% over the previous time frame. Shares have fallen 2.3% in 2019 through Monday, while the S&P 500 has gained 17.2%.
The major chains may not be able to absorb the financial distress. McDonald’s is better positioned than Domino’s, Bernstein says.
Here are seven major companies whose stocks moved on the week’s news
Even after lowered guidance, Domino’s shares trade at a very rich 22 times forward earnings, according to FactSet.
Domino’s Pizza, the chain that helped popularize delivery, is losing sales to newer rivals for that business.
A flurry of earnings reports in coming weeks will mark the latest test for stocks after a rocky stretch of economic data exacerbated worries that a global manufacturing slowdown is trickling into the U.S.
Walmart’s chief information officer is joining Yum Brands as the owner of KFC, Pizza Hut and Taco Bell aims to invest more in technology to improve food delivery.
Papa John’s hired Arby’s President Rob Lynch as its chief executive, the pizza chain’s second change at the top in less than two years amid falling sales and controversies.
The pizza chain that helped popularize delivery is keeping its pies off other services that allow diners to order all manner of cuisines to their doors.
Much like paying up for child care makes sense, it may be worth paying up for it in your portfolio.
Domino’s could get served in its commitment to serving its own food.
10 Stocks to Sell Before December’s Meltdown
Credit Suisse positive on Domino's
A deeper look reveals a different story for six companies
7 Restaurant Stocks to Leave on Your Plate
Shares of Chipotle have skyrocketed over 90% in 2019. Now with Chipotle set to release its Q3 2019 financial results on Tuesday, October 22, let's dive into some estimates and fundamentals to see if investors should consider buying CMG stock right now...
If Capitalism Is Wrong, I Don't Want To Be Right. Forget Politics, Let's Trade
Here are seven major companies whose stocks moved on the week’s news
Restaurant sales weak in Q3
A Great Move By Domino's
Despite Lackluster Quarter, Sell-Side Says Domino's Will Eventually Beat Back New Third-Party Delivery Competition
Companies in the news are: DPZ, AMBA, HA, ASUR
Domino's (DPZ) top line in Q3 gains from higher supply chain volume, robust same-store sales and increase in-store counts both in the U.S. and international markets.
What Delivery Apps Mean For Domino's Pizza
After Oppenheimer and Wedbush gave Domino’s Pizza (NYSE: DPZ) a Buy rating last month, the company received another Buy, this time from J.P.[...]
Wednesday's top analyst upgrades, downgrades and initiations for Wednesday included Caterpillar, Chipotle Mexican Grill, Constellation Brands, Domino's Pizza, Fannie Mae, FedEx, Harley-Davidson, IBM, Netflix, Peloton Interactive and Wingstop.
In a report released today, Nick Setyan from Wedbush maintained a Buy rating on Domino’s Pizza (DPZ), with a price target of $280.00.[...]
Domino's (DPZ) reported their third quarter earnings before the opening bell today.
Stock Market Today: Top Teen Spending Spots
Domino's Pizza, Inc.'s (DPZ) CEO Ritch Allison on Q3 2019 Results - Earnings Call Transcript
Non-Gluten Products Market to Eyewitness Massive Growth by 2025
Financialbuzz.com: 'Market Recap' Week Ending October 11th, 2019
Web Accessibility Provider Monsido Comments on Supreme Court Ruling: Domino's Rejected Appeal a Positive Wake-Up Call
Domino's® Celebrates National Pizza Month with a Carryout Special
AEC Group Ranks No. 4050 on the 2019 Inc. 5000 With Three-Year Revenue Growth of 80 Percent
Car Keys Express Wins Inc. Magazine's "Inc. 5000" Award
Domino's Pizza® Announces Q3 2019 Earnings Webcast
Global Online Food Delivery And Takeaway Market-Analysis By Growth, Emerging Trends and Future Opportunities Till 2023.
Know How Global Online Food Delivery And Takeaway Market Is trending In Key Regions To Reach At Next Level In Coming Years?
Online Food Delivery and Takeaway Market Size is Anticipated to Witness 16.46% Growth From 2019 To 2024
Lithion Energy Corp. to Become Queen's Road Capital Ltd.
Beekeeper Raises $45M Series B Funding Round
CryptoCorner: FINMA Publishes Guidelines Pertaining to Stablecoins and Libra, Coinbase Considering Initial Exchange Offering
North America Cheese Market demand to grow at a CAGR of 3.15% during 2019-2025
Health and Wellness Food market is expected to see growth rate of 5.7% and may see market size of USD1253 Billion by 2024
Domino's Pizza, Inc. is a pizza company, which operates a network of company-owned and franchise-owned stores in the U.S. and international markets. It operates though the following three segments: U.S. Stores, International Franchise and Supply Chain. The U.S. Stores segment consists primarily of franchise operations. The International Franchise segment comprises of a network of franchised stores. The Supply Chain segment operates regional dough manufacturing and food supply chain centers. The company was founded by James Monaghan and Thomas Stephen Monaghan in 1960 and is headquartered in Ann Arbor, MI. (See Full Profile)