Core Viewpoint - Domino's Pizza has shown underwhelming investment performance over the past five years, with only a 1% increase in stock value, raising questions about its potential for a rally following the upcoming earnings report on October 14 [2]. Company Performance - The last earnings report in July showed same-store sales growth of 3.4%, surpassing analyst expectations of 2%, but diluted earnings per share were $3.81, below the anticipated $3.95, leading to a decline in stock value shortly after [4][6]. - Historically, Domino's stock has fallen after the last three earnings reports, indicating a trend of post-earnings declines despite some positive price movements [6]. Valuation Concerns - Domino's currently trades at a price-to-earnings (P/E) multiple of around 25, which is in line with the S&P 500 average but considered high for a company experiencing single-digit growth [8]. - The company's modest growth amidst potential consumer spending cuts raises concerns that its growth rate may decline further in future quarters, impacting stock performance [10]. Investment Outlook - A positive earnings report could lead to a slight increase in stock value, but without a significant surprise, expectations remain low for substantial gains [11]. - The stock has remained flat this year, suggesting that waiting for the earnings report before making investment decisions may be prudent [12].
Should You Buy Domino's Pizza Stock Before Oct. 14?