Thus, that suggests that Domino’s really can’t swing that far in any one direction. In addition, it will likely catch a few new ones stepping down from more expensive dinner options. It will lose some customers to worsening macroeconomic conditions, of course, but it likely won’t lose many. The packages not only offered food and soft drinks but also promotional merchandise related to the game.Īt the end of the day, Domino’s has a fairly static customer base. While the deal was for a limited time, customers no doubt welcomed the relief.ĭomino’s locations in Malaysia and Singapore took advantage of the popularity of the open-world RPG “Genshin Impact” to offer a promotional deal that brought “emergency food” supplies to gamers. If the smoke alarms in the home work when the pizza arrives, the pizza is free.ĭomino’s recently made its affordable dinner option even more so with a 20% discount for everything ordered online. Those who order delivery may be chosen at random to have their pizza accompanied by a fire truck. For instance, a recently-announced promotion between Domino’s and several area fire departments is offering free pizza for anyone with working smoke detectors. Even UBS notes that Domino’s represents “a very affordable dinner option for families.”ĭomino’s is also working to crack new markets with cross-promotional operations. Some of these include new programs to improve driver shortages as well as price increases on certain promotional items. For instance, there are those “long-term catalysts” that UBS described. However, there are some advantages to Domino’s. For every household that decides to forego their Friday night pizza some night to save cash, there’s likely someone picking it up instead of a steak dinner. Further, there are also those who will pivot into pizza from other options. There aren’t many readily-available substitute goods to pivot into. ![]() It’s a food, and a comparatively inexpensive food as well. While it’s safe to say that some would delay a new car purchase in a souring economy or put off buying a new television, the same can’t be said for pizza. This makes forecasting the macroeconomic impact rather difficult. The problem with trying to project Domino’s Pizza’s future is that its product is surprisingly stable. Pizza’s Broad Appeal Limits Downside Risk for DPZ Stock While there were 20 Buy transactions staged, there were 54 Sell transactions. Meanwhile, in the last 12 months, the picture has worsened in objective terms. In the last three months, insiders staged three selling transactions, and that’s the entirety of insider trading. The aggregate only drives the point home harder. Meanwhile, there hasn’t been an Informative Buy in a year. The latest “Informative Sell” was just two months ago when director Andrew Balson sold just short of $5.4 million in stock. Insider trading at Domino’s is strongly Sell-weighted, both in the aggregate and in informative terms. However, it’s a wholly different story among Domino’s insiders. That’s slightly above the midpoint of Neutral and implies only a slightly better than even chance the company will ultimately outperform the broader market. Right now, Domino’s Pizza has a 6 out of 10 Smart Score on TipRanks. That’s not the case in some metrics, however. On the surface, Domino’s investor sentiment looks fairly quiet. Some Serious Issues in Investor Sentiment for DPZ Stock In fact, I don’t look for it to make much movement in any direction. I don’t quite share Geiger’s optimism on Domino’s, but I also don’t look for it to lose much ground, either. Finally, the company also had what was described as a “compelling long-term growth profile.” Moreover, Geiger and UBS noted that there were some factors that could actually step up U.S. ![]() Geiger noted that, while some corners expressed concern about a potential decline in pizza sales, these concerns were largely overblown. Analyst Dennis Geiger upgraded the company from Neutral to Buy. The stock gained in Tuesday’s trading session thanks to an upgrade at UBS ( NYSE: UBS). Domino’s Pizza ( NYSE: DPZ) is a legend in the pizza delivery space, often mentioned in the same breath as the biggest pizza chains on the planet.
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