Consumer Discretionary
Domino's Pizza China's successful store expansion in the country drives better growth than market expectations. Sandalwood’s data highlighted DPC’s outperformance on June 21st and in late July the company published earnings stating total revenue in 1H24 was to improve by no less than +45%, comfortably exceeding the full year consensus of +31-34%. The stock climbed over 10% on the back of this news and also significantly outperformed the Hang Seng Index in June / July.
Consumer Discretionary
Report by
Compass Restaurant Consulting & Research
CO
CMG - Can sustain current SSS trends (June est. +8-10%); growing positive traffic trends (one of the only concepts doing so) coupled with little to no resistance to price increases. The new Pollo Asado is one of the most successful promotions in a long time.
MCD - Dominating the price / value messaging and taking market share from peers. June SSS expectations are +2-4%. Top sales drivers: 2 for $6, Nugget Bundles, Off Premise sales. On the negative side, most franchisees unhappy with the new PACE Store Visitation Program.
DPZ - Declining momentum. June SSS expectations are in the negative 3-1% range. Driver shortages not only impacting sales and market share, but also brand credibility; not easily fixed.
