- Domino's released its Q2 2021 results in late July, reporting revenue of ~$1.03 billion, translating to 12% growth in revenue year-over-year.
- This solid performance was driven by strong same-store sales both domestically and internationally, helping the company to report quarterly earnings per share of $3.06, a 5% beat vs. estimates.
- However, while Domino's has one of the industry's best compound annual EPS growth rates, the stock is not cheap, trading at more than 32x FY2022 earnings estimates.
- So, while I think the stock is an excellent buy-the-dip candidate, I would not be surprised by a deeper pullback, suggesting that investors should be patient before adding to positions.
For further details see:
Domino's Pizza: Limited Margin Of Safety At Current Levels