Domino's Pizza Poised to Report Q2 Revenue, EPS Below Consensus, RBC Capital Market Says

Domino's Pizza (DPZ) is poised to report its Q2 revenue marginally below consensus and earnings per share 3.6% below, with US same-store sales are expected to be in-line and international sales to miss estimates, RBC Capital Markets said in a note. The risk-reward profile on the company's stock is skewed negative heading into the quarterly print, RBC said on Sunday, adding that the industry's promotional activity likely continued through the quarter, which has limited Domino's Pizza's market share gains. RBC said that industry competitive dynamics and discounting in Q2 have remained similar to Q1, and that Domino's Pizza has not made significant changes to their value offerings in response to competitors. Over medium to long-term, Domino's Pizza is expected to return to "meaningful share gains" from its competitors as industry discounting normalizes and given the company's strong franchisee profitability and paybacks, according to the note. Domino's Pizza is scheduled to report its Q2 earnings on July 20. RBC maintained its sector perform rating with a $325 price target. Price: $310.37, Change: $+10.91, Percent Change: +3.64%