What’s Next For Domino’s Pizza Stock After A 12% Rise In A Month?

DPZ: Domino's Pizza logo
DPZ
Domino's Pizza

Domino’s Pizza Inc (NYSE: DPZ), the world’s largest franchisor of pizza restaurants with over 13,800 locations in 85 countries, has increased by 12% over the last twenty-one trading days (one month) and currently stands at around $339. The company currently operates two-thirds of its stores abroad, and the international segment still presents the company with its greatest growth potential, since convenience fast food penetration is lower abroad than in the U.S. DPZ reported improving sales and profitability trends in Q3 last month, implying stabilization following a tough period of weakening results. It posted a modest 2% increase in global same-store sales for the period that ended in late September, but that result was still an encouraging sign for the business. It should be noted that the company’s sales have fallen for two consecutive quarters in the core U.S. market. While soaring food costs are affecting the company, still Domino’s operating profit landed at 16.5% of sales in the third quarter compared to 18.5% of sales a year ago. That result puts DPZ above high-performing businesses like Chipotle Mexican Grill (NYSE: CMG) which saw an operating profit of 15.1% of its sales in Q3 2022.

Now, is DPZ stock poised to decline in the short term or are gains looking more likely? Based on our machine learning analysis of trends in the stock price over the last ten years, there is a 54% chance of a rise in DPZ stock over the next month (twenty-one trading days). See our analysis of DPZ’s Stock Chance Of Rise for more details.

Calculation of ‘Event Probability’ and ‘Chance of rising’ using the last ten years data

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[1] Returns of -0.1% or lower over a five-day period on 1103 occasions out of 2517 (44%); Stock rose in the next five days in 645 of these 1103 instances (58%)

[2] Returns of 5.1% or higher over ten-day period on 476 occasions out of 2516 (19%); Stock rose in the next ten days in 272 of these 476 instances (57%)

[3] Returns of 12% or higher over twenty-one-day period on 221 occasions out of 2516 (9%); Stock rose in the next twenty-one days in 119 of these 221 instances (54%)

It is helpful to see how its peers stack up. DPZ Peers shows how Domino’s Pizza stock compares against peers on metrics that matter. You will find other useful comparisons for companies across industries at Peer Comparisons.

With inflation rising and the Fed raising interest rates, DPZ has fallen 40% this year. Can it drop more? See how low can DPZ stock go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.

What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.

Returns Nov 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 DPZ Return 2% -40% 113%
 S&P 500 Return -3% -21% 67%
 Trefis Multi-Strategy Portfolio -5% -26% 192%

[1] Month-to-date and year-to-date as of 11/10/2022
[2] Cumulative total returns since the end of 2016

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