Pizza supply chain Domino’s Pizza (NYSE: DPZ) shares have not too long ago fallen as a result of benchmark indices promoting off. Shares of the world’s largest pizza restaurant chain confirmed indicators of reversion in its enterprise because the pandemic tailwinds appear to have dissipated because the days of COVID lockdowns. Top line truly slipped (-1%) in its This fall 2021 earnings launch. While worldwide is driving gross sales momentum, its U.S. enterprise suffered from staffing challenges in a tricky labor market which was partially offset by increased supply charges and menu worth inflation. The Company opened over 1,200 new shops in 2021, which ought to proceed to gas progress in 2022. Prudent traders in search of publicity into the chief in pizza supply can look ahead to opportunistic pullbacks in shares of Domino’s Pizza.
This fall Fiscal 2021 Earnings Release
On March 1, 2022, Domino’s launched its fourth-quarter fiscal 2021 outcomes for the quarter ending December 2021. The Company reported an earnings-per-share (EPS) revenue of $4.25 excluding non-recurring gadgets versus consensus analyst estimates for a revenue of $4.29, lacking estimates by (-$0.04). Revenues fell (-1%) year-over-year (YoY) to $1.34 billion falling wanting the $1.38 billion consensus analyst estimates. Same-store gross sales within the U.S. grew 1% within the quarter and three.5% for 2021. International sale retailer gross sales grew 1.8% for This fall 2021 and eight% for fiscal 2021. The Company added 468 shops within the quarter and 1,204 complete shops in fiscal 2021. Domino’s CEO Ritch Allison commented, “”When we compare our 2021 results back to pre-pandemic 2019, the Domino’s brand grew by nearly $3.5 billion in global retail sales over the last two years. Looking forward, we remain focused on leading with innovation and leveraging our global scale to drive outstanding returns for our franchisees and shareholders.”
Conference Call Takeaways
CEO Allison welcomed the new CEO Russell Weiner as of May 1, 2022. Mr. Weiner is currently the COO of Domino’s since 2008. CEO Allison is expected to retire on July 15, 2022. CEO Allison proceeded to highlight 2021 milestones including the $17.8 billion in global sales for 2021, up 11.7% over 2020 which had an impressive 10.4% growth. The Domino’s brand grew by $3.5 billion, which was the size of its entire U.S. sales in the past decade, pre-pandemic in two years. CEO Allison didn’t really address the elephant in the room, the drop in U.S. sales and profit momentum. CFO Jessica Parrish provided more insight into the 2022 guidance and impacted charges, “We currently project that the store food basket within our U.S. system will be up 8% to 10% as compared to 2021 levels. We previously told you that we estimated that changes in foreign currency exchange rates could have a $4 million to $8 million negative impact on royalty revenues in 2022 as compared to 2021. Based on the current outlook, we now estimate that this could be an $8 million to $12 million negative impact. We expect that we may continue to see volatility in this outlook as there are many uncontrollable factors that drive the underlying exchange rates.” She did level out the 112 consecutive quarter of constructive worldwide comps indicating that worldwide progress was nonetheless occurring. The weak point in U.S. identical retailer gross sales have been a results of a really difficult staffing surroundings for franchise shops regardless of increased menu costs and enhance of supply charges and product combine.
DPZ Opportunistic Pullback Levels
Using the rifle charts on the weekly and day by day time frames gives a precision view of the panorama for DPZ inventory. The weekly rifle chart peaked close to the $445.44 Fibonacci (fib) stage. The weekly downtrend has a falling 5-period transferring common (MA) resistance at $415.73 because the stochastic makes an attempt to bounce in the direction of the 20-band. The weekly 15-period MA resistance continues to be falling at $415.73 crossing beneath the weekly 50-period MA at $472.73. The weekly 200-period MA assist sits at $352.18 with weekly decrease Bollinger Bands (BBs) close to the $339.52 fib. The day by day rifle chart downtrend has stalled out because the 5-period MA is rising at $400.80 to doubtlessly cross the 15-period MA at $405.20 to set off a breakout. The day by day market construction low (MSL) purchase triggered on the breakout above $393.97. The day by day 50-period MA sits close to the $435.58 fib with higher BBs at $450.38 and the day by day 200-period MA at $484.86. The day by day stochastic crossed up via the 20-band. Prudent traders can search for opportunistic pullbacks on the $399.78 fib, $393.97 day by day MSL set off, $387.31 fib, $382.14 fib, $375.13, $367.29, $355.27, $349.09, and the $339.52 fib stage. Upside trajectories vary from the $445.44 fib up in the direction of the $545.53 fib stage.