The pizza wars pit the two main pizza franchises towards one another: Domino’s Pizza Inc. NYSE: DPZ versus Papa John’s Worldwide Inc. NASDAQ: PZZA. Whereas each manufacturers function within the retail/wholesale sector and have their followers and critics, one inventory is clearly successful this warfare: Domino’s.
Get Domino’s Pizza alerts:Signal UpMarket Divergence: Domino’s Surges Whereas Papa John’s Struggles
In truth, the trajectory between the two shares could not be any extra reverse. Domino’s inventory is buying and selling up 26.5% year-to-date (YTD), whereas Papa John’s is buying and selling down almost 39% YTD close to 52-week lows when the S&P 500 index is buying and selling close to all-time highs.
With such a divergence, traders query whether or not it can proceed and which inventory presents a greater funding alternative transferring ahead. Let’s look at every inventory.
Domino’s: The World’s Largest Pizza Firm
DPZDomino’s Pizza$533.69 +1.53 (+0.29%) (As of 03:57 PM ET)52-Week Vary$313.87▼$542.75Dividend Yield1.13percentP/E Ratio34.84Price Goal$525.66
Domino’s is the world’s largest pizza firm, working in over 90 worldwide markets serviced by over 20,500 eating places. Over 95% of its shops are franchised, which makes Domino’s an asset-light operation. The corporate caters to budget-conscious shoppers, providing quite a few promotions, coupons, and a loyalty program accessible by its cellular app. The corporate is extremely technology-oriented, with heavy investments within the cellular app, on-line ordering, and supply monitoring.
Domino’s Q1 2024 EPS Beats Estimates
On April 24, 2024, Domino’s reported Q1 2024 EPS of $3.58, beating analyst estimates by 18 cents. Revenues grew 5.9% YoY to $1.08 billion, matching consensus estimates. International retail gross sales grew 7.3% YoY. U.S. same-store gross sales (SSS) grew 5.6% YoY. Worldwide gross sales rose 0.9%. International web retailer progress was 164. Its latest partnership with Uber Applied sciences Inc. NYSE: UBER Uber Eats partnership will end in an additional 3% extra gross sales by the channel.
Domino’s Reaffirms Robust 2024 Forecasts
Domino’s expects 7% annual world retail gross sales progress and eight% annual revenue progress from operations. The corporate expects to develop its retailer rely by over 1,100 in 2024. U.S. comps are anticipated to remain above 3% every quarter. Uber Eats gross sales are anticipated to extend all year long as advertising and marketing spend and consciousness rise.
Domino’s CEO Russell Weiner commented, “The famend worth we created by our new and improved Domino’s Rewards loyalty program drove outsized comp efficiency, which flowed by to the underside line with double-digit revenue progress. Importantly, our progress within the U.S. got here by constructive order counts in each our carryout and supply companies for the second quarter in a row. Additional, this order progress was throughout all revenue cohorts.”

DPZ Inventory Continues its Each day Ascending Channel
The each day candlestick chart on DPZ shows an ascending channel comprised of upper highs and better lows. Shares are buying and selling close to the decrease trendline because the each day RSI falls to the 55-band. Pullback assist ranges are at $500.82, $469.17, $440.37, and $416.36.Domino’s Pizza analyst scores and value targets are on MarketBeat.    
Papa John’s: Navigating Restoration and Development Challenges
PZZAPapa John’s Worldwide$48.52 -0.27 (-0.55%) (As of 03:57 PM ET)52-Week Vary$46.20▼$86.38Dividend Yield3.79percentP/E Ratio21.56Price Goal$76.30
Papa John’s is the fourth-largest pizza operator within the nation. It’s nonetheless recovering from the numerous controversies surrounding its founder, John Schnatter and the poison tablet adopted by the Board of Administrators to forestall Schnatter from ever regaining management of the corporate. Roughly 91% of its U.S. shops and round 41% of its worldwide shops are franchised. Papa John’s focuses on recent and premium substances. The inventory is buying and selling close to its 52-week lows.
Papa John’s Revenues Proceed to Fall in Q1 2024

Papa John’s CEO Ravi Thanawala commented, “Our groups are taking a disciplined method to working the enterprise, bettering restaurant-level margins, and growing working income regardless of a difficult atmosphere within the first quarter.”
Thanawala concluded, “Extra importantly, we’re making significant progress on our Again to Higher 2.0 and Worldwide Transformation initiatives. The foundational enhancements we’re implementing in our restaurant operations, digital options, and advertising and marketing platforms are designed to drive sustainable, worthwhile progress across the globe.”

PZZA Inventory is in a Descending Triangle Breakdown Sample
The each day candlestick chart on PZZA illustrates a bearish descending triangle sample. The descending triangle shaped on the decrease highs that shaped following the $64.67 peak right down to the flat-bottom decrease trendline assist at $46.68. The each day RSI is falling again to the 30-band, indicating a possible breakdown. Pullback assist ranges are at $46.22, $41.60, $38.29, and $31.50.
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