Domino’s Pizza Earnings In Focus As Analysts Watch For Signs Of Demand Slowdown

Domino's Pizza (DPZ) is set to report its third-quarter results on Tuesday, with Wall Street analysts and investors looking forward to details on consumer demand at fast-food chains as more customers become cautious about spending for dine outs over eating at home.

The company is expected to post quarterly revenue of $1.14 billion and earnings per share of $3.98, according to data from Fiscal AI.

Jefferies lowered its price target on Domino's Pizza to $455 from $490 and maintained a ‘Hold’ rating, according to TheFly. The firm said it sees a softer finish to the third quarter for its U.S. restaurant coverage, as demand trends remained choppy and it is now more conservative regarding near-term same-store sales growth.

The firm said it believes there is a "moderate downside risk" in the third quarter for restaurants.

Retail sentiment on Domino's Pizza remained unchanged in the ‘extremely bullish’ territory compared to a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits. Shares of the company were up 1% in afternoon trading.

Piper Sandler on Friday cut its price target on Domino's Pizza to $443 from $477 and maintained a ‘Neutral’ rating on the shares. Regarding Domino's Pizza's upcoming third-quarter results, the firm noted that investor expectations suggest the company should report domestic same-store sales results that are at least in line with, and possibly slightly better than, the current consensus estimate of a 4.2% increase.

The firm noted that, despite some concerns within the investment community regarding Domino's Pizza's fourth-quarter-to-date trends, the current consensus estimate of a 5.1% rise remains in place.

Shares of Domino's Pizza have declined 2.5% this year and have lost 4.4% of their value in the last 12 months.

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