![]() My portfolio goal is to find a dip-buying opportunity below the moving average. The share price as of this article writing, and the closing price on Nov 2nd, was $348.48, which is slightly above the 200-day moving average which I am tracking. ![]() No indication of further dividend hikes have been announced for now, so I expect it to continue at $1.21 per share. This is a concern to me as a dividend investor when comparing stocks to add to my portfolio.įor example, its peer Yum! Brands has a forward dividend yield slightly better at 1.95%, while the peer group leader in annual revenue growth Jack in the Box has a yield of 2.73%. The dividend yield, however, is subpar, being 45.7% below the sector average. For example, when comparing the dividend from Sep 2023 with that of Sep 2020, we can see a 55% growth over those 3 years, which I think is a great sign for dividend-income cashflow investors. The dividends growth picture looks great, as I showed in the table below. So, the continued campaign of share buybacks I think will likely impact cashflow and equity going forward. As of September 10, 2023, the Company had a total remaining authorized amount for share repurchases of $199.5MM. We know that both cashflow and equity can be impacted by share buybacks, for example.įrom the fiscal Q3 earnings release, the company said the following on share buybacks:ĭuring the third quarter of 2023, the Company repurchased and retired 229,860 shares of common stock for a total of $90MM. In terms of equity, the company saw a 4% YoY decline, also missing my goal. The free cashflow is also looking positive on a YoY basis, but missed my goal and could use some more strength. The top-line revenue picture is mediocre, with a nearly 4% YoY drop in revenue that missed my goal.Ī brighter picture exists with profitability, with a 46.5% YoY growth in net income, which beat my goal.ĭomino's - financial statements (author analysis) The key financial statements we talk about briefly here are the income statement, cashflow statement, and balance sheet. Based on this, my own sentiment is cautious on this stock when it comes to growth.ĭomino's - store growth outlook (company Q3 results) Financial Statements Unfortunately, the growth outlook is lackluster according to its own projections. Because Domino's also has competitors in this space, who are growing their retail footprint globally with new restaurant openings, Domino's must also try and keep up with growth. It is a capital-intensive industry, often requiring the taking on of high levels of debt to finance the overhead, and depending on high volume of sales each day. This subcategory typically is a combination of company-owned restaurants and those owned and operated by franchisees who pay some type of franchise fee and or royalty to the parent company. In this peer group, Domino's did not show a lot of strength as its YoY revenue growth was negative, coming in far below the peer group average of 8.79% YoY growth.ĭomino's - growth vs industry peers (author analysis)Īs my table shows, the top winner in this case is fast-food chain Jack in the Box ( JACK), with 28.1% YoY growth, while two major pizza chains are towards the bottom. In putting together a comparison table to compare this stock to in terms of YoY revenue growth, I decided on 7 stocks from the restaurants sector, all of which are major brand names in the quick-serve subcategory of restaurants. Some of the data comes from the most recent FY23 Q3 results from Oct 12th, while the forward-looking sentiment relates to the upcoming FY23 Q4 earnings results expected on Feb. ![]() I exclusively cover stocks and foreign ADRs that are dividend-paying and trade on major US exchanges only (NYSE, Nasdaq). ![]() My WholeScore Rating methodology looks at this stock holistically across multiple categories including key risks, and assigns a rating score. The risk of high debt load impacting equity was offset by the fact that the debt is falling, as is interest expense. Offsetting the negatives are a nice 3-year dividend growth, YoY profitability growth, and positive cash flow. The current share price crossover above the 200-day average could be a nice sell opportunity. This sell rating is driven by negative points such as poor revenue growth, overvaluation, below average dividend yield, and negative equity. On the heels of my recent research note covering Pizza Hut's parent company Yum Brands ( YUM), I am sticking my head in the pizza oven again with today's rating of its competitor in the quick-serve restaurant sector, and a household name in the US for decades, Domino's Pizza ( NYSE: DPZ ).īesides the latest pizza on sale at Domino's, today I am also slapping this stock with a sell rating, my first one of this month.
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