11 Stocks on Jim Cramer’s Radar Right Now

9. Domino’s Pizza, Inc. (NYSE:DPZ)

Number of Hedge Fund Holders: 52

Domino’s Pizza, Inc. (NYSE:DPZ) operates one of the most famous pizza restaurant chains all over the world. The company operates through three segments, U.S. Stores, International Franchise, and Supply Chain. Under the Domino’s brand, it serves pizzas alongside various other menu items, including oven-baked sandwiches, pasta, boneless chicken, wings, breads, desserts, and beverages. Cramer talked about the company and commented:

“The last quarter was a big disappointment, largely to, surprisingly weak numbers from overseas. You know what? That does make Domino’s stock a little hard to call. But if you had, you know, push comes to shove, I’d go with the buyers, not the sellers.”

For Q2, Domino’s Pizza (NYSE:DPZ) reported strong comparable sales growth and solid earnings for the quarter. The company achieved a GAAP EPS of $4.03, which beat estimates by $0.35. Meanwhile, revenue reached $1.09 billion, marking a 7.1% increase compared to the previous year, although this figure fell short of expectations by $10 million.

It is important to note that the U.S. same-store sales grew by 4.8% year over year, a sign of the brand’s ongoing popularity.

Despite these positive results, Domino’s Pizza (NYSE:DPZ) stock experienced a decline, primarily driven by guidance for the remainder of 2024 and expected long-term growth challenges.

Management forecasted that comparable sales growth in the U.S. is expected to decrease to around 3% for the rest of the year, which did not align with investor expectations. Additionally, the company faces hurdles in achieving its 2024 target of opening 925 new stores internationally, with management projecting a shortfall of 175 to 275 stores.