![]() ![]() "Whether it's teachers, moms or any other person who deserves a celebration, our weeklong carryout special is here to make all festivities delicious and affordable," said Jenny Fouracre, Domino's spokesperson. “The competitive positioning and fundamental performances have started to face pressures and their results have more recently trailed Domino’s peers, leading to management’s willingness to explore deviations from their prior approaches.”ĭomino’s stock was down 4.5% in Friday trading, and has slumped 38.8% for the year-to-date.Looking to reward the hardworking teachers in your life for Teacher Appreciation Week? Want to give a mom a night off from cooking for Mother's Day? The carryout special is a great choice for all kinds of celebrations. “The fundamentals and operations are in a state of flux, in part due to capacity constraints from a lack of drivers domestically, which are currently outweighing the long-term pros across the Domino’s model (solid cash flows, unit economics/development),” analysts said. MKM Partners maintained its neutral stock rating, but cut its price target to $405 from $440. “While bears point to recent top line softness as evidence of long-term headwinds (i.e., increased competition) materializing in a normalizing/post-COVID environment, carryout strength appears to suggest brand demand remains healthy, and that delivery staffing challenges are indeed the primary driver of current weakness,” wrote RBC Capital Markets, which rates Domino’s stock outperform and cut its price target to $440 from $480. “Management is working to take best practices from the top quartile down to the lower ranked stores, but if this is not successful management said that ‘all options are on the table’ to improve delivery results, which we read as a potential willingness to consider third-party delivery,” wrote Benchmark analysts in a note.ĭomino’s has made changes to manage inflation as well, raising the price of its Mix & Match offer to $6.99 from $5.99, and adding options to the offer, including 32-piece Parmesan Bread Bites and six-piece chicken wings.Īlso: P&G makes the case for its premium products as consumer budgets battle shrinkflation and rising prices Stifel rates Domino’s stock hold with a $345 price target, down from $425. We believe Domino’s staffing issues will persist until it improves its attractiveness to drivers, which could require significant investments and time.” “In addition to providing fully autonomous scheduling, many third-party companies also offer aggressive financial incentives to attract delivery drivers- particularly at peak times -and assign no additional responsibilities beyond delivering the order. ![]() “We believe Domino’s employment proposition for would-be delivery drivers has deteriorated compared to many of the benefits now offered by third-party services,” wrote Stifel analysts in a note. Incoming Chief Executive Russell Weiner said the company is looking at driver labor to analyze where improvements can be made. The company has turned to call centers to help with the phones while workers focus on orders and delivery. Stores that were fully staffed or nearly so outperformed those with the most severe labor challenges by 12 percentage points, he added. ![]() stores were cumulatively closed the equivalent of almost six days across the entire U.S. “To give you a sense for the magnitude, when we add up all the lost operating hours during the first quarter, U.S. “Staffing challenges continued during Q1, resulting in reduced operating hours and other service-related challenges in many stores across the U.S. ![]() employment costs accelerate in first quarter, adding to inflation worries It was one of the highlights of a quarter in which the company missed on profit and revenue. The carry-out business was a strong one for Domino’s, with U.S. ![]()
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