Since 1988 it has more than doubled the S&P 500 with an average gain of +24.17% per year. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. and Morningstar, Inc.Ĭopyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606Īt the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. Forbes Media, LLC Investor's Business Daily, Inc. Each of the company logos represented herein are trademarks of Microsoft Corporation Dow Jones & Company Nasdaq, Inc. This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. However, earnings growth of Domino’s has an edge over Papa John's. The fundamentals of both companies are solid. The initiative also supports PZZA’s overall commitment to operate more than 335 stores in four countries by 2030. The company intends to open more than 100 restaurants through the partnership. During third-quarter fiscal 2022, it signed a deal with a global franchisee - Levant - to add two new countries. Increased focus on identifying new markets (to enter) and attracting new capitalized franchisees (for partnership) bode well for PZZA. Backed by better brand positioning, new products have driven higher ticket and traffic across dayparts without cannibalizing core premium products and complexing operations at other stores. Notably, menu innovation, like toasted handheld Papadias and Epics Stuffed Crust, continues to witness solid popularity among customers, thereby boosting the top line. Papa John's continues to focus on product introduction to drive growth. The company has more than 77 million customers enrolled in its loyalty database. As of fiscal 2022, it has approximately 30 million active members in its loyalty program. The extended ways to order a pizza have kept DPZ at the forefront of digital ordering and customer convenience. Meanwhile, Domino’s digital loyalty program - Piece of the Pie Rewards - continues to contribute significantly to traffic gains. In 2022, digital sales, accounted for approximately two-thirds of the global retail sales, were $11.7 billion. It is investing heavily in technology-driven initiatives like digital ordering to bolster sales. During fiscal first quarter, it added 22 net new stores in the United States, thereby bringing the total U.S. FundamentalsĭPZ’s international growth continues to be strong and diversified across markets due to exceptional unit-level economics. However, sales are likely to improve 3.8% year over year. Meanwhile, PZZA’s current-year earnings per share are likely to decline 4.8% year over year.
Notably, sales are expected to improve 1.8% year over year. Estimated Earnings & RevenuesĪrguably, earnings growth is of utmost importance for determining a stock’s potential as surging profit levels indicate strong prospects (and stock price gains).įor the current year, DPZ’s earnings per share are expected to increase 6.4% year over year. Domino's has an edge with a lower forward 12-month P/E ratio of 21.98X compared with Papa John's figure of 25.08X. On the basis of forward 12-month P/E ratio, which is a commonly used multiple for valuing restaurant stocks, the industry is currently trading at 24.74X compared with the S&P 500’s 18.48X. Shares of Domino's have declined 13.7% in the past year, while Papa John's has decreased 12.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. With each stock carrying a Zacks Rank #3 (Hold), let's check out which is poised better with respect to different parameters.
Snooze restaurant stocks free#
( PZZA Quick Quote PZZA - Free Report) - are trying out different strategies to generate profits. ( DPZ Quick Quote DPZ - Free Report) and Papa John's International, Inc. In line with the industry's growth, leading restaurant companies - Domino's Pizza, Inc. Rising prices are also hurting the industry’s traffic. However, high wages and food cost inflation woes stay. Restaurant operators are constantly partnering with delivery channels and digital platforms to drive incremental sales. With growing influence of Internet, digital innovation has become the need of the hour. Restaurant operators’ focus on digital innovation, sales-building initiatives and cost-saving efforts have been acting as catalysts. The industry participants are also benefiting from partnerships with delivery channels and digital platforms. Rapid increase in menu prices, average check growth and expansion efforts are driving the restaurant industry.
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