The stock has gained 15.2% in the past year. ARCO has a long-term earnings growth rate of 9.5%. The Zacks Consensus Estimate for Chipotle’s 2024 sales and EPS suggests growth of 12.4% and 19.6%, respectively, from the year-ago period’s levels.Īrcos Dorados carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here. The stock has improved 47.7% in the past year. CMG has a long-term earnings growth rate of 31.8%. Ĭhipotle sports a Zacks Rank #1 (Strong Buy). ( ARCO Quick Quote ARCO - Free Report) and Chuy's Holdings, Inc. ( CMG Quick Quote CMG - Free Report), Arcos Dorados Holdings Inc. Some better-ranked stocks in the Zacks Retail-Wholesale sector are Chipotle Mexican Grill, Inc. Zacks Rank & Key Picksĭomino's currently carries a Zacks Rank #3 (Hold). The company is cautious about the ongoing uncertain macroeconomic environment. Although the company initiated certain actions to improve staffing levels, complete recovery is likely to take time. The downside was primarily caused by inflationary pressures and staffing challenges. Shares of Domino's have declined 18% in the past year against the industry’s rise of 20.1%. Also, it is confident about its two to three-year outlook of 5-7% in annual global net store growth. During the quarter, its international business added 106 net new stores. During the fiscal first quarter, the company added 22 net new stores in the United States, thereby bringing the total U.S. The company’s international growth continues to be strong and diversified across markets, courtesy of exceptional unit-level economics. Since Domino’s generates a chunk of its revenues from outside the United States, the company is committed to accelerating presence in high-growth international markets to boost business. Given the alignment with the company’s Mix & Match menu, the company is optimistic in this regard and anticipates the initiative to provide an incremental margin dollar lift in the upcoming periods. It also outperformed the previous product launches of Dips & Twists and the Chicken Taco and Cheeseburger specialty pizza. Backed by its strong margin profile, the company reported healthy ticket drive for its franchisees. During the first quarter of fiscal 2023, the company announced the launch of a potato side menu, Loaded Tots, and reported solid feedback with respect to the same. Increased focus on menu additions bodes well. The initiatives are likely to enhance the speed, accuracy and efficiency of services. Apart from this, enhanced make-line and cut-table technology and AI-enabled forecasting are being rolled out for better matching of demand with capacity. During the first quarter of fiscal 2023, the company initiated the roll out of electric vehicles for pizza delivery. Other digital enhancements in ordering, selecting service methods, paying and tipping were implemented to enhance the consumer experience. The extended ways to order a pizza have kept Domino’s at the forefront of digital ordering and customer convenience. Domino’s digital loyalty program - Piece of the Pie Rewards - continues to contribute significantly to traffic gains. During the quarter, the company stated benefits from lapping Omicron (from 2022) and the addition of a boost week (in 2023).ĭomino’s invests heavily in technology-driven initiatives like digital ordering to bolster sales. Comps at international stores, excluding foreign-currency translation, inched up 1.2% year over year. At domestic company-owned stores, Domino’s comps increased 7.3% year over year against a decline of 10.5% reported in the year-ago quarter. Excluding foreign-currency impacts, global retail sales increased 5.9% from the prior-year quarter’s levels. The upside was driven by higher U.S stores (up 5.1% year over year). During the fiscal first quarter, Global retail sales (including total franchise and company-owned units) increased 2.2% on a year-over-year basis in the fiscal first quarter. Factors Driving Growthĭomino's continues to impress investors with solid global comps growth. Let’s discuss the factors highlighting why investors should retain the stock for the time being. However, inflationary pressures and staffing challenges are a concern. This and the emphasis on menu additions bode well. ( DPZ Quick Quote DPZ - Free Report) will likely benefit from solid comps growth, technological enhancements and unit-expansion efforts.
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