The stock market was mixed on Monday as investors monitored the debt-ceiling negotiations. Investors were looking forward to the meeting of House Speaker Kevin McCarthy and President Joe Biden to try and come to an agreement on raising the debt ceiling.
Treasury Secretary Janet Yellen warned that the U.S. could default on its debt as early as June 1as
Overall, S&P 500 closed flat at 4,193, while NASDAQ grew 0.5% 12,721.
Tweet of the Day
First Sentiment Shift Of 2023: S&P Breakout Sparks FOMO Frenzy, Hedge Fund Buying https://t.co/qKftwJacfc
— zerohedge (@zerohedge) May 22, 2023
Chart of the Day
Here is the ten-year chart of Domino’s Pizza (DPZ) as of May 3, 2023, when the stock was at $315.
Domino’s is the world’s #2 pizza chain and #1 pizza delivery chain, with more than 18,800 locations in over 90 markets around the world. Around 98% of stores are owned and operated by franchisees. The company generates sales and profits by charging franchisees royalties and fees as well as selling them food, equipment, and supplies. Domino’s is the largest pizza company in the world, based on global retail sales.
Domino’s used to be a stellar growth stock. The company was a juggernaut in improving its pizza flavor, coming out with new ideas like chicken bites, jumping into new technology with its app, and using profits to buy back shares. Then when COVID-19 had people staying at home during 2020, business was booming, and the stock was flying higher. But when COVID went away in 2022, people went back to eating out again, and Domino’s business sagged. And now in 2023, things still aren’t back to normal.
At home delivery from other restaurants has taken away DPZ’s opportunity to grow. DoorDash, GrubHub and UberEats have made it easy for other types of food to be delivered, and that’s bad news for DPZ. Management claims it has momentum in the carry-out business, with more than half the orders now coming through that channel.
DPZ is part of the Conservative Growth Portfolio. This stock is down-and-out, but profit growth accelerated last quarter, and that could mean a sign of better times ahead.
