In This Article:
Investing.com -- Argus downgraded Domino’s Pizza Inc (NYSE:DPZ) to Hold from Buy, citing higher food and labour costs as well as weak consumer spending at U.S. restaurants.
The brokerage lowered its 2025 earnings estimate for the pizza chain to $17.30 per share from $18.12, following a mixed fourth-quarter report.
Domino’s revenue rose 2.9% to $1.44 billion but missed consensus expectations of $1.48 billion. U.S. same-store sales increased 0.4%, below estimates of 1.1%, while company-owned locations saw a 0.7% decline.
Despite near-term challenges, Argus maintained a long-term Buy rating on Domino’s, citing strong margins and expansion plans. The company recently raised its quarterly dividend by 15% to $1.74 per share.
Related Articles
Argus cuts Domino’s rating to hold on cost pressures, weak U.S. sales
Morgan Stanley bullish on Progressive, lifts EPS estimate
Ryanair set to quickly ramp up passenger numbers in Ukraine, CEO says