Investing.com -- Argus downgraded Domino’s Pizza Inc (NYSE:DPZ) to Hold from Buy, citing higher food and labour costs as well as weak consumer spending at U.S. restaurants.
The brokerage lowered its 2025 earnings estimate for the pizza chain to $17.30 per share from $18.12, following a mixed fourth-quarter report.
Domino’s revenue rose 2.9% to $1.44 billion but missed consensus expectations of $1.48 billion. U.S. same-store sales increased 0.4%, below estimates of 1.1%, while company-owned locations saw a 0.7% decline.
Despite near-term challenges, Argus maintained a long-term Buy rating on Domino’s, citing strong margins and expansion plans. The company recently raised its quarterly dividend by 15% to $1.74 per share.
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