Domino's Pizza Stock: Buy the Dip?

Shares of Domino's Pizza (NYSE: DPZ) took a big hit on Thursday after it delivered a disappointing fourth-quarter report and discouraging guidance. The pizza company's more than 11% share price decline for the session was painful for its current shareholders -- but is it a buying opportunity for investors who have been watching from the sidelines?

Here's a closer look at Domino's fourth-quarter report, as well as an examination of whether or not the stock looks attractive now.

Domino's Pizza, which makes money from a combination of company-owned stores, franchise royalties and fees, and sales of pizza supplies, saw its revenue increase by 3.6% year over year to $1.39 billion in the fourth quarter. Not only was this a substantial slowdown from 7.1% growth in the prior quarter, it was meaningfully below analysts' average forecast for revenue of $1.44 billion. A key factor underlying the quarter's weakness was a substantial slowdown in U.S. comparable-store sales growth. Comps at U.S. stores grew by just 0.9%, down from 2% growth last quarter.

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Source Fool.com