#Dominos stock driver
#Dominos stock free

#Dominos stock free

During FY2021, the firm generated operating cash flows of ~$654 million, and free cash flows of ~$560 million. Net income for the period was ~$156 million, reflecting an expansion of 2.5% over the previous year's same quarter. growing 1% and international 1.8% over F4Q2020. Same-store-sales were higher, with the U.S. sales decreased 2.6%, and international sales increased 2.2%. On a year-over-year basis, global retail sales declined 0.2%, U.S. For the period, revenues of ~$1.34 billion (-1% on a year over year basis) missed consensus estimates of ~$1.38 billion, and earnings per share of $4.25 (+10.4% compared to F4Q2020) was below analyst projections of $4.29. Key Takeaways From The Fourth Quarterį4Q2021 Results Summary. (Please go through our initiation report ' Domino's Pizza: Set To Capture An Additional Fraction Of The High Growth Global Pizza Market' and additional notes for our long term opinion on the stock). Therefore, there is no change to our 1-year Price Target of $498/share for the company. Given business dynamics, we are confident that DPZ will meet our conservative 5-year normalized revenue growth rate of 8% and 5-year straight-lined operating cash flows growth rate of 13%. Overall, the anticipated dramatic upsurge in retail sales and margins will reflect in considerable escalation in profits and free cash flows on a secular basis, in our opinion.Īlthough, DPZ is likely to encounter near-term headwinds, we remain upbeat on the firm on a long-term basis. The revenue leverage from the potential sharply higher retail sales will come on top of the opportunities for margin expansion described above, driving further operating leverage. In addition, based on our longer-term expectations of lower commodity costs and no shortage of labor, as well as improvements in operations, and economies of scale and scope related to corporate spending, the digital platform, and advertising, we anticipate significant margin expansion. Nevertheless, based on dramatic success in international markets, DPZ will handily achieve its two to three year retail sales growth target of ~6% to ~10%, in our assessment. Domestically, we expect relatively slower revenue growth, with footprint expansion driving most of the advance in retail sales, and same-store sales growth remaining tepid. Over the long-term, the international business will drive most of DPZ's revenue growth, through a substantial increase in the store count as well as significant same-store sales growth, leading to dramatic upsurge in retail sales. Overall, although we expect revenue leverage from rising retail sales to mitigate some contraction in margins due to inflation, growth in earnings and free cash flows is likely to decline on a year-over-year basis, over the short-term, in our judgment. However, margins are likely to suffer led by persisting inflationary pressures in the U.S., and exacerbated by higher commodity costs in international territories due to the Ukraine war.

In addition, growth in the foreign business is likely to accelerate propelled by the further relaxing of pandemic restrictions across numerous countries, in particular in regions where a majority of DPZ's sales are derived from dine-in transactions. business to improve somewhat towards the back half of the year, as labor conditions ease, driven by initiatives implemented by the company as well as an increase in availability of relevant talent. Given the scenario, although we anticipate improvement in the international business, which will counter some part of the potential weakness in domestic financial outcomes, earnings growth on an annualized basis will probably come in lower than that evidenced over recent years, in our opinion.īeyond the first quarter, we expect DPZ's U.S. Moreover, given that commodity cost inflation remained a feature during the first quarter, overall margins will probably be impacted, despite some changes in pricing enacted in January and March. In addition, the absence of the stimulus package and unemployment benefits which fueled customer demand last year will also reflect in a weaker top-line.

#Dominos stock driver

To be specific, the labor shortage, including driver scarcity, that drove a demand and supply mismatch, with the company having to limit service over the fourth quarter, likely persisted over the first quarter. business, we expect relatively muted first quarter growth in revenues and earnings. Based on continued headwinds associated with the U.S. The average consensus revenue and earnings per share estimates for the quarter are ~$1.03 billion and $3.09.

Jetcityimage/iStock Editorial via Getty Images Investment Conclusionĭomino's Pizza ( NYSE: DPZ) is scheduled to report F1Q2022 earnings on April 28, 2022, before the market opens.