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Trends & Analysis
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GBP/USD may correct lower

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Week Ahead Preview: 24th of March

Trends & Analysis
News

GBP/USD may correct lower

News

Japan stocks rise, ending 3-day losing streak

News

USD/JPY recoups some losses – what’s next?

News

Crude oil surges after Trump’s tariff announcement

News

USD records weekly gain versus EUR

News

Week Ahead Preview: 24th of March

Asset Watch

Time to order Domino’s Pizza?

Tuesday, February 28, 2023

With a difficult macroeconomic environment separating the haves from the have-nots, Domino’s Pizza felt investors’ wrath on Feb. 23. After reporting fourth-quarter revenue that was below analysts’ consensus estimate, during the Q4 conference call, CFO Sandeep Reddy said:
“Given the current macroeconomic headwinds that are impacting our U.S. delivery business in particular, we are updating our two to three-year outlook from 6% to 10% global retail sales growth to 4% to 8% global retail sales, and unit growth from 6% to 8% global net unit growth to 5% to 7% global net unit growth.”
But even though the fundamental weakness is troubling, haven’t we seen this movie before?

When a weak Q1 earnings print hit the wire on Apr. 28, the stock traded 10% lower intraday before ending down by more than 5%. Similarly, while an intraday rally didn’t occur this time around, the nearly 12% decline on Feb. 23 was another example of investors’ disdain for the disappointing performance.

However, the price action from mid-May through August showed that after Domino’s Pizza found a bottom roughly three weeks after the April print, buying the weakness proved profitable for the optimists.

Likewise, the large gap on the chart’s right side shows a similar setup. And while the stock closed below its October low on Feb. 24, there is support in the $280 range.

So, should we expect another reversal, or will investors be more spiteful this time around?


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