On August 28, Domino's Pizza rose 5.17% in regular trading, trading at $349.75/share, with turnover of $129 million. The rally was driven by a combination of strong interim results from its China franchisee and an optimistic analyst outlook on same-store sales prospects.
Domino's China franchisee DPC Dash reported H1 revenue of RMB 3.134 billion, up 20.8% year-over-year, with net profit growing 22.9% and same-store transaction volume rising 7.1%. Mainland China has now become Domino's second-largest international market by store count. Meanwhile, Oppenheimer issued a note on August 24 stating that Domino's faces a more favorable same-store-sales setup in coming quarters, supported by healthy traffic momentum, improved check management, and low expectations. The firm noted that the October CEO transition to Joe Jordan provides an opportunity to re-establish yearly SSS targets and eliminate an overhang on the investment narrative, maintaining its outperform rating.
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