Domino’s Pizza (DPZ) stock is sliding after reporting Q2 revenue that fell short of Wall Street’s estimate. AB Bernstein senior analyst Danilo Gargiulo notes that both national and global demand was positive. He also says the results point to the strength of Domino’s loyalty program and increased access to consumers through the partnership with Uber Eats (UBER). However, international markets are slowing down for Domino’s in places like Japan, France, and Australia, which resulted in management lowering guidance on unit growth overseas.
When asked about Domino’s suspension of long-term guidance, Gargiulo noted there may be a further overhang on the stock price until there is more clarity on what lies ahead for the pizza chain. He thinks that the lack of guidance on international markets shows that Domino’s is being conservative and that the company wants to wait and “be more safe about the real opportunity that is outstanding” before reinstating that outlook.
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This post was written by John Lesinski
Source Agencies
