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Should You Buy the Dip in Domino’s Pizza? By StockNews

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© Reuters. Should You Buy the Dip in Domino’s Pizza?

Domino’s Pizza (DPZ) has secured a strong foothold in the food service industry with its innovative ordering platform and service offerings. However, its shares have tumbled in price recently. And given the company’s mixed financials and stretched valuation, the question is, can the stock recover in the near term? Read more to find out.Founded in 1960, Domino’s Pizza Inc. (NYSE:), which is headquartered in Ann Arbor, Mich., is the world’s largest pizza company, with a substantial delivery and carryout operation. It is one of the most well-known restaurant chains globally, with more than 18,300 outlets in more than 90 countries.

DPZ’s shares have declined 10% over the past month to close yesterday’s trading session at $459.90 because the company failed to beat the consensus revenue estimate in its last reported quarter. A slowing in U.S. same-store sales added to investor concerns.

The stock is currently trading 16.2% below its 52-week high of $548.72, which it hit on June 22, 2021. Though the company has witnessed strong earnings growth, weakness in sales could keep investors concerned. Furthermore, the ongoing labor crunch could dampen DPZ’s growth prospects.

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