Domino's Pizza Stock (NYSE:DPZ), Trade Ideas

Domino's Pizza

Domino's is a restaurant operator and franchiser with nearly 20,600 global stores across more than 90 international markets at the end of 2023. The firm generates revenue through the sales of pizza, wings, salads, sandwiches, and desserts at company-owned stores, royalty and marketing contributions from franchise-operated stores, and its network of 25 domestic (and five Canadian) dough manufacturing and supply chain facilities, which centralize purchasing, preparation, and last-mile delivery for the firm's U.S. and Canadian restaurants. With roughly $18.3 billion in 2023 system sales, Domino's is the largest player in the global pizza market, ahead of Pizza Hut, Little Caesars, and Papa John's.

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Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.

Domino&#39;s Pizza To Rally Over 11%? Here Are 10 Top Analyst Forecasts For Tuesday

PZZA, Papa John's

Analyst Color

Equities

Reiteration

PZZA

Despite a lowered price target, BMO Capital Markets analyst Andrew Strelzik maintains an optimistic view on Papa John&#39;s International, reiterating an Outperform rating. 

Papa John&#39;s CEO Departure Is A Surprise, Says Analyst

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OKTA

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U.S. stocks closed higher on Thursday, with the Nasdaq Composite settling at an all-time high level. The tech-heavy Nasdaq gained around 6.12%, while the S&amp;P 500 added 5.17% in February. The Dow, meanwhile, rose 2.22%, recording gains for four straight months.

This Analyst With 85% Accuracy Rate Sees More Than 19% Upside In Domino&#39;s Pizza - Here Are 5 Stock Picks For February From Wall Street&#39;s Most Accurate Analysts

Domino's Pizza Inc

DOMINO'S PIZZA AUSTRALIA by Domino's Pizza Australia New Zealand

Domino's Pizza Enterprises Ltd

<p><strong>Domino's Pizza's</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) short percent of float has fallen 23.51% since its last report. The company recently reported that it has <strong>1.50 million shares sold short</strong>, which is 4.88% of all regular shares that are available for trading. Based on its trading volume, <strong>it would take traders 2.53 days to cover their short positions on average.</strong></p>
<h3>Why Short Interest Matters</h3>
<p>Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.</p>
<p>Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.</p>
<p><strong>See Also:</strong> <a href="https://www.benzinga.com/short-interest"><strong>List of the most shorted stocks</strong></a></p>
<h3>Domino's Pizza Short Interest Graph (3 Months)</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1713904226_0.png" alt="short_fig" /></p>
<p>As you can see from the chart above the percentage of shares that are sold short for Domino's Pizza has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.</p>
<h3>Comparing Domino's Pizza's Short Interest Against Its Peers</h3>
<p>Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.</p>
<p>According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Domino's Pizza's peer group average for short interest as a percentage of float is 9.39%, which means the company has <strong>less</strong> short interest than most of its peers.</p>
<p>Did you know that increasing short interest can actually be <strong>bullish</strong> for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/"><strong>This post by Benzinga Money explains how you can profit from it.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and was reviewed by an editor.</em></p>


Short Sellers

Short Ideas

Looking Into Domino's Pizza's Recent Short Interest

<p>Jefferies  analyst Andy Barish   maintains Domino's Pizza (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) with a Hold and raises the price target from $455 to $480.</p>


Jefferies Maintains Hold on Domino's Pizza, Raises Price Target to $480

<p>UBS  analyst Dennis Geiger   maintains Domino's Pizza (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) with a Buy and raises the price target from $526 to $570.</p>


UBS Maintains Buy on Domino's Pizza, Raises Price Target to $570

<p>Deep-pocketed investors have adopted a bearish approach towards Domino's Pizza (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>), and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in DPZ usually suggests something big is about to happen.</p>
<p>We gleaned this information from our observations today when Benzinga's options scanner highlighted 15 extraordinary options activities for Domino's Pizza. This level of activity is out of the ordinary.</p>
<p>The general mood among these heavyweight investors is divided, with 6% leaning bullish and 93% bearish. Among these notable options, 8 are puts, totaling $417,630, and 7 are calls, amounting to $409,037.</p>
<h3>Projected Price Targets</h3>
<p>Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $470.0 to $510.0 for Domino's Pizza over the last 3 months. </p>
<h3>Insights into Volume &amp; Open Interest</h3>
<p>Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.</p>
<p>This data can help you track the liquidity and interest for Domino's Pizza's options for a given strike price.</p>
<p>Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Domino's Pizza's whale activity within a strike price range from $470.0 to $510.0 in the last 30 days. </p>
<h3>Domino's Pizza Option Activity Analysis: Last 30 Days</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1712942228_0.png" alt="Options Call Chart" /></p>
<h3>Significant Options Trades Detected:</h3>
<p>
<table>
<thead>
<tr>
<th><strong>Symbol</strong></th>
<th><strong>PUT/CALL</strong></th>
<th><strong>Trade Type</strong></th>
<th><strong>Sentiment</strong></th>
<th><strong>Exp. Date</strong></th>
<th><strong>Ask</strong></th>
<th><strong>Bid</strong></th>
<th><strong>Price</strong></th>
<th><strong>Strike Price</strong></th>
<th><strong>Total Trade Price</strong></th>
<th style="text-align: right;"><strong>Open Interest</strong></th>
<th style="text-align: right;"><strong>Volume</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td>DPZ</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>06/21/24</td>
<td>$21.3</td>
<td>$21.1</td>
<td>$21.1</td>
<td>$510.00</td>
<td>$88.7K</td>
<td style="text-align: right;">156</td>
<td style="text-align: right;">106</td>
</tr>
<tr>
<td>DPZ</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>06/21/24</td>
<td>$21.6</td>
<td>$21.4</td>
<td>$21.4</td>
<td>$510.00</td>
<td>$85.8K</td>
<td style="text-align: right;">156</td>
<td style="text-align: right;">30</td>
</tr>
<tr>
<td>DPZ</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>06/21/24</td>
<td>$20.7</td>
<td>$20.2</td>
<td>$20.2</td>
<td>$510.00</td>
<td>$83.0K</td>
<td style="text-align: right;">156</td>
<td style="text-align: right;">344</td>
</tr>
<tr>
<td>DPZ</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>09/20/24</td>
<td>$25.7</td>
<td>$24.8</td>
<td>$25.5</td>
<td>$480.00</td>
<td>$66.3K</td>
<td style="text-align: right;">10</td>
<td style="text-align: right;">47</td>
</tr>
<tr>
<td>DPZ</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>09/20/24</td>
<td>$25.7</td>
<td>$24.2</td>
<td>$25.4</td>
<td>$480.00</td>
<td>$60.9K</td>
<td style="text-align: right;">10</td>
<td style="text-align: right;">107</td>
</tr>
</tbody>
</table>
</p>
<h3>About Domino's Pizza</h3>
<p>Domino's is a restaurant operator and franchiser with nearly 20,600 global stores across more than 90 international markets at the end of 2023. The firm generates revenue through the sales of pizza, wings, salads, sandwiches, and desserts at company-owned stores, royalty and marketing contributions from franchise-operated stores, and its network of 25 domestic (and five Canadian) dough manufacturing and supply chain facilities, which centralize purchasing, preparation, and last-mile delivery for the firm's U.S. and Canadian restaurants. With roughly $18.3 billion in 2023 system sales, Domino's is the largest player in the global pizza market, ahead of Pizza Hut, Little Caesars, and Papa John's.</p>
<p>Following our analysis of the options activities associated with Domino's Pizza, we pivot to a closer look at the company's own performance.</p>
<h3>Where Is Domino's Pizza Standing Right Now?</h3>
<ul>
<li>Currently trading with a volume of 157,938, the DPZ's price is down by -1.47%, now at $497.12. </li>
<li>RSI readings suggest the stock is currently is currently neutral between overbought and oversold.</li>
<li>Anticipated earnings release is in 17 days.</li>
</ul>
<h3>What The Experts Say On Domino's Pizza</h3>
<p>Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $519.8.</p>
<ul>
<li>Consistent in their evaluation, an analyst from TD Cowen keeps a Buy rating on Domino's Pizza with a target price of $550. </li>
<li>An analyst from Stephens &amp; Co. has revised its rating downward to Equal-Weight, adjusting the price target to $479. </li>
<li>An analyst from TD Cowen downgraded its action to Buy with a price target of $550. </li>
<li>An analyst from Citigroup persists with their Neutral rating on Domino's Pizza, maintaining a target price of $505. </li>
<li>Maintaining their stance, an analyst from Morgan Stanley continues to hold a Overweight rating for Domino's Pizza, targeting a price of $515. </li>
</ul>
<p>Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Domino's Pizza options trades with real-time alerts from <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.</p>


Options

Domino's Pizza's Options: A Look at What the Big Money is Thinking

<p>Morgan Stanley  analyst Brian Harbour   maintains Domino's Pizza (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) with a Overweight and raises the price target from $485 to $515.</p>


Morgan Stanley Maintains Overweight on Domino's Pizza, Raises Price Target to $515

<p>TD Cowen  analyst Andrew Charles   reiterates Domino's Pizza (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) with a Buy and maintains $550 price target.</p>


TD Cowen Reiterates Buy on Domino's Pizza, Maintains $550 Price Target

<p>Stephens &amp; Co.  analyst Jim Salera   reinstates Domino's Pizza (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) with a Equal-Weight and announces $479 price target.</p>


Initiation

Stephens & Co. Reinstates Equal-Weight on Domino's Pizza, Announces $479 Price Target

<p>Citigroup  analyst Jon Tower   maintains Domino's Pizza (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) with a Neutral and raises the price target from $458 to $505.</p>


Citigroup Maintains Neutral on Domino's Pizza, Raises Price Target to $505

<p>Stifel  analyst Chris O'Cull   maintains Domino's Pizza (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) with a Buy and raises the price target from $500 to $550.</p>


Stifel Maintains Buy on Domino's Pizza, Raises Price Target to $550

<p>Wedbush  analyst Nick Setyan   reiterates Domino's Pizza (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) with a Outperform and maintains $520 price target.</p>


Wedbush Reiterates Outperform on Domino's Pizza, Maintains $520 Price Target

DPC Dash-Domino's Pizza China's FY23 Revenue Increased 51% YoY; Expects To Enter The Thousand Store Club In 2024

<p>Evercore ISI Group  analyst David Palmer   maintains Domino's Pizza (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) with a Outperform and raises the price target from $510 to $560.</p>


Evercore ISI Group Maintains Outperform on Domino's Pizza, Raises Price Target to $560

WIIM

BURL

DASH

LULU

WING

Shares of companies in the broader consumer discretionary sector are trading lower as stocks fall on rate cut uncertainty.

<p>Whales with a lot of money to spend have taken a noticeably bullish stance on <strong>Domino's Pizza</strong>.</p>
<p>Looking at options history for Domino's Pizza (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) we detected 10 trades.</p>
<p>If we consider the specifics of each trade, it is accurate to state that 50% of the investors opened trades with bullish expectations and 50% with bearish.</p>
<p>From the overall spotted trades, 4 are puts, for a total amount of $336,330 and 6, calls, for a total amount of $502,270.</p>
<h3>Predicted Price Range</h3>
<p>Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $400.0 to $660.0 for Domino's Pizza over the last 3 months. </p>
<h3>Analyzing Volume &amp; Open Interest</h3>
<p>Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.</p>
<p>This data can help you track the liquidity and interest for Domino's Pizza's options for a given strike price.</p>
<p>Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Domino's Pizza's whale activity within a strike price range from $400.0 to $660.0 in the last 30 days. </p>
<h3>Domino's Pizza Call and Put Volume: 30-Day Overview</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1712176291_0.png" alt="Options Call Chart" /></p>
<h3>Largest Options Trades Observed:</h3>
<p>
<table>
<thead>
<tr>
<th><strong>Symbol</strong></th>
<th><strong>PUT/CALL</strong></th>
<th><strong>Trade Type</strong></th>
<th><strong>Sentiment</strong></th>
<th><strong>Exp. Date</strong></th>
<th><strong>Ask</strong></th>
<th><strong>Bid</strong></th>
<th><strong>Price</strong></th>
<th><strong>Strike Price</strong></th>
<th><strong>Total Trade Price</strong></th>
<th style="text-align: right;"><strong>Open Interest</strong></th>
<th style="text-align: right;"><strong>Volume</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td>DPZ</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>06/20/25</td>
<td>$17.5</td>
<td>$16.5</td>
<td>$17.5</td>
<td>$400.00</td>
<td>$236.2K</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">135</td>
</tr>
<tr>
<td>DPZ</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>06/20/25</td>
<td>$25.8</td>
<td>$24.5</td>
<td>$25.5</td>
<td>$640.00</td>
<td>$229.5K</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>DPZ</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/16/26</td>
<td>$35.0</td>
<td>$33.3</td>
<td>$35.0</td>
<td>$660.00</td>
<td>$126.0K</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">36</td>
</tr>
<tr>
<td>DPZ</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/16/26</td>
<td>$90.8</td>
<td>$83.6</td>
<td>$90.8</td>
<td>$510.00</td>
<td>$45.4K</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">5</td>
</tr>
<tr>
<td>DPZ</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>05/03/24</td>
<td>$24.2</td>
<td>$20.2</td>
<td>$24.2</td>
<td>$515.00</td>
<td>$38.7K</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">16</td>
</tr>
</tbody>
</table>
</p>
<h3>About Domino's Pizza</h3>
<p>Domino's is a restaurant operator and franchiser with nearly 20,600 global stores across more than 90 international markets at the end of 2023. The firm generates revenue through the sales of pizza, wings, salads, sandwiches, and desserts at company-owned stores, royalty and marketing contributions from franchise-operated stores, and its network of 25 domestic (and five Canadian) dough manufacturing and supply chain facilities, which centralize purchasing, preparation, and last-mile delivery for the firm's U.S. and Canadian restaurants. With roughly $18.3 billion in 2023 system sales, Domino's is the largest player in the global pizza market, ahead of Pizza Hut, Little Caesars, and Papa John's.</p>
<h3>Current Position of Domino's Pizza</h3>
<ul>
<li>Currently trading with a volume of 1,024,918, the DPZ's price is up by 1.73%, now at $505.86. </li>
<li>RSI readings suggest the stock is currently may be overbought.</li>
<li>Anticipated earnings release is in 26 days.</li>
</ul>
<h3>Expert Opinions on Domino's Pizza</h3>
<p>Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $550.0.</p>
<ul>
<li>An analyst from TD Cowen persists with their Buy rating on Domino's Pizza, maintaining a target price of $550. </li>
</ul>
<p>Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.</p>
<p>If you want to stay updated on the latest options trades for Domino's Pizza, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.</p>


Looking At Domino's Pizza's Recent Unusual Options Activity

<p>Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-ratings/">analyst ratings page</a>.</p>
<ul>
<li>Susquehanna boosted the price target for <strong> Taiwan Semiconductor Manufacturing Company Limited </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tsm#NYSE">TSM</a>) from $160 to $180. Susquehanna analyst Mehdi Hosseini maintained a Positive rating. Taiwan Semiconductor shares gained 4% to close at $141.49 on Monday. <a href="https://www.benzinga.com/quote/TSM/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Seaport Global increased the price target for <strong> Nuvei Corporation </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvei#NASDAQ">NVEI</a>) from $29 to $34. Seaport Global analyst Jeff Cantwell downgraded the stock from Buy to Neutral. Nuvei shares gained 2.5% to close at $32.41 on Monday. <a href="https://www.benzinga.com/quote/NVEI/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Truist Securities increased <strong> Lowe&#39;s Companies, Inc. </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/low#NYSE">LOW</a>) price target from $258 to $271. Truist Securities analyst Scot Ciccarelli maintained a Buy rating. Lowe&#39;s shares fell 2.1% to close at $249.28 on Monday. <a href="https://www.benzinga.com/quote/LOW/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Mizuho boosted the price target for <strong> The Southern Company </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/so#NYSE">SO</a>) from $73 to $76. Mizuho analyst Anthony Crowdell maintained a Buy rating. Southern shares fell 0.9% to close at $71.10 on Monday. <a href="https://www.benzinga.com/quote/SO/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>B of A Securities cut <strong> FedEx Corporation </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fdx#NYSE">FDX</a>) price target from $346 to $340. B of A Securities analyst Ken Hoexter maintained a Buy rating. FedEx shares fell 3.3% to close at $280.13 on Monday. See how other analysts view this stock.</li>
<li>BMO Capital slashed <strong> BCE Inc. </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bce#NYSE">BCE</a>) price target from $54 to $46. BMO Capital analyst Tim Casey downgraded the stock from Outperform to Market Perform. BCE shares fell 0.5% to close at $33.80 on Monday. <a href="https://www.benzinga.com/quote/BCE/analyst-ratings">See how other analysts view this stock.</a></li>
<li>TD Cowen boosted the price target for <strong> Domino&#39;s Pizza, Inc. </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dpz#NYSE">DPZ</a>) from $525 to $550. TD Cowen analyst Andrew Charles maintained a Buy rating. Domino&#39;s shares fell 0.6% to close at $493.92 on Monday. <a href="https://www.benzinga.com/quote/DPZ/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Truist Securities increased <strong> AutoZone, Inc. </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/azo#NYSE">AZO</a>) price target from $3,363 to $3,523. Truist Securities analyst Scot Ciccarelli maintained a Buy rating. AutoZone shares gained 0.5% to close at $3,168.60 on Monday. <a href="https://www.benzinga.com/quote/AZO/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Piper Sandler raised <strong> Shockwave Medical, Inc. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/swav#NASDAQ">SWAV</a>) price target from $290 to $360. Piper Sandler analyst Adam Maeder maintained an Overweight rating. Shockwave Medical shares fell 1.6% to close at $320.51 on Monday. <a href="https://www.benzinga.com/quote/SWAV/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Desjardins boosted <strong> BRP Inc. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dooo#NASDAQ">DOOO</a>) price target from $112 to $137. Desjardins analyst Benoit Poirier maintained a Buy rating. BRP shares climbed 7.6% to close at $72.17 on Monday. <a href="https://www.benzinga.com/quote/DOOO/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
<p>&nbsp;</p>
<p>Check This Out: <a href="https://www.benzinga.com/news/earnings/24/04/38039337/paychex-pvh-and-3-stocks-to-watch-heading-into-tuesday"><em> Paychex, PVH And 3 Stocks To Watch Heading Into Tuesday </em></a></p>


Domino's Pizza To Rally Over 11%? Here Are 10 Top Analyst Forecasts For Tuesday

<p>TD Cowen  analyst Andrew Charles   maintains Domino's Pizza (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) with a Buy and raises the price target from $525 to $550.</p>


TD Cowen Maintains Buy on Domino's Pizza, Raises Price Target to $550

<p><strong>BMO Capital Markets&nbsp;</strong>analyst Andrew Strelzik reiterated an Outperform rating on the shares of&nbsp;<strong>Papa John&#8217;s International Inc</strong>&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PZZA#NASDAQ">PZZA</a>) and<a target="_blank" href="https://www.benzinga.com/quote/PZZA/analyst-ratings" rel="noreferrer noopener">&nbsp;lowered the price target from $90 to $80.</a></p>
<p>Yesterday, PZZA announced that CEO Rob Lynch would depart on April 30 to assume another CEO position, with&nbsp;<a target="_blank" href="https://www.benzinga.com//node/37867035" rel="noreferrer noopener">advisory support through April.</a></p>
<p>The analyst is surprised with Lynch&#8217;s departure as he led PZZA&#8217;s recovery over past 4-5 years, moved HQ to Atlanta recently and also instituted major strategic actions.</p>
<p><strong><em>Related</em></strong><em>:&nbsp;</em><a target="_blank" href="https://www.benzinga.com/markets/equities/24/03/37874126/shake-shack-taps-papa-johns-top-executive-as-new-ceo" rel="noreferrer noopener"><em>Shake Shack Taps Papa John&#8217;s Top Executive As New CEO</em></a></p>
<p>The departure adds to a growing list of leadership changes over the last year, including prior CFO, COO, Chairman of the Board and Chief Development Officer/COO of International.</p>
<p>The company&#8217;s interim CEO Ravi Thanawala joined less than one year ago from outside the restaurant industry.</p>
<p>Lynch&#8217;s departure comes at a time when Papa John&#8217;s faces competitive pressures from <strong>Domino&#8217;s Pizza Inc </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>), unit growth pressures, challenges in its largest international market (U.K.), and questions about implications for franchisee economics from recent initiatives, noted the analyst.</p>
<p>The CEO departure is likely to create questions about the potential of the initiatives to drive performance until there is greater evidence, the analyst mentioned.</p>
<p>Though the CEO transition creates the risk of earnings rebase to position for stronger long-term performance, the analyst notes a fresh perspective may not be a bad thing for the brand&#8217;s efforts to reinvigorate sales momentum.</p>
<p>Recognizing near-term challenges, the long-term opportunity to capitalize remains compelling, and shares are undervalued, concluded the analyst.</p>
<p>The analyst lowered the price target after trimming multiple assumptions for increased uncertainty, including leadership changes, comp trajectory, and potential <a href="https://www.benzinga.com/calendars/guidance">earnings rebase under eventual new leadership.</a></p>
<p><strong>Price Action</strong>: PZZA shares are trading lower by 3.60% at $65.79 on the last check Friday.</p>
<p><em>Photo via Wikimedia Commons</em></p>


Papa John's CEO Departure Is A Surprise, Says Analyst

<p><strong>Domino's Pizza's</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) short percent of float has risen 6.24% since its last report. The company recently reported that it has <strong>1.37 million shares sold short</strong>, which is 5.11% of all regular shares that are available for trading. Based on its trading volume, <strong>it would take traders 2.87 days to cover their short positions on average.</strong></p>
<h3>Why Short Interest Matters</h3>
<p>Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.</p>
<p>Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.</p>
<p><strong>See Also:</strong> <a href="https://www.benzinga.com/short-interest"><strong>List of the most shorted stocks</strong></a></p>
<h3>Domino's Pizza Short Interest Graph (3 Months)</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1710449114_0.png" alt="short_fig" /></p>
<p>As you can see from the chart above the percentage of shares that are sold short for Domino's Pizza has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.</p>
<h3>Comparing Domino's Pizza's Short Interest Against Its Peers</h3>
<p>Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.</p>
<p>According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Domino's Pizza's peer group average for short interest as a percentage of float is 10.16%, which means the company has <strong>less</strong> short interest than most of its peers.</p>
<p>Did you know that increasing short interest can actually be <strong>bullish</strong> for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/"><strong>This post by Benzinga Money explains how you can profit from it.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and was reviewed by an editor.</em></p>


Peering Into Domino's Pizza's Recent Short Interest

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>After a slowdown in the economy and a dip in consumer spending, there is expected to be a rise in retail and consumer spending this year. Inflation is cooling, and we have been promised a rate cut later in the year. An improvement in macroeconomic conditions means higher consumer spending. Once the interest rates come down, mortgages and auto loans will become cheaper, allowing consumers to make discretionary purchases.&nbsp;This will directly impact <a href="https://investorplace.com/industries/consumer-discretionary/retail/restaurant/">restaurant stocks</a>. </p>



<p>The warm summer days will be here soon, there will be holidays from school and we will be eating out a lot more. Consumers have plenty to spend, and food remains one of the biggest expenses for all of us. As consumer spending improves, restaurant stocks are set to gain. If you are ready to make the most of increased consumer spending, now is the time to invest in these seven tasty restaurant stocks.&nbsp;</p>



<h2>McDonald&rsquo;s (MCD)</h2>



<p>Buying <strong>McDonald&rsquo;s&nbsp;</strong>(NYSE:<a href="https://investorplace.com/stock-quotes/mcd-stock-quote/"><strong>MCD</strong></a>) stock below $300 is a very smart move as the stock is under pressure after the management issued a <a href="https://www.cnbc.com/2024/02/05/mcdonalds-mcd-q4-2023-earnings.html">slower growth guidance</a>. The stock is down 7% year-to-date and has moved from $257 to $300 over the past six months. As one of the most sought-after businesses, the current dip in MCD stock is temporary.&nbsp;</p>



<p>It has nailed the franchise business model, which helps keep the operating costs to a minimum while generating steady revenue growth. The company saw a 9% rise in comparable store sales for 2023, and it might be facing slower sales growth, but it is still making money.&nbsp;</p>



<p>It makes significant money from royalties and franchise fees, which keeps the business rolling. McDonald&rsquo;s has partnered with <strong>Krispy Kreme</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/dnut-stock-quote/"><strong>DNUT</strong></a>) and will&nbsp;add doughnuts to its menu soon. The stock enjoys a dividend yield of 2.42% and has a record 48 years of consistent dividend increases.</p>



<h2>Starbucks (SBUX)</h2>



<p>Global coffee chain <strong>Starbucks</strong>&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/sbux-stock-quote/"><strong>SBUX</strong></a>) has become a familiar name today. Also known for brand value, the company is on a global expansion spree and aims to have <a href="https://www.marketwatch.com/story/starbucks-wants-to-have-55-000-stores-by-2030-and-expects-to-pay-its-workers-more-long-before-then-74b0c838#">55,000 stores</a> worldwide by 2030, up from the current 36,000. Nearing its 52-week low, Starbucks stock has dropped over 4% in the month and is exchanging hands for $88.&nbsp;</p>



<p>The current dip is due to a slowdown in sales, but I believe it could be temporary. Despite reporting a dip in consumer traffic in the U.S., the company is still making money. The numbers aren&rsquo;t as disappointing as the market makes it look. The comparable store sales increased by 5% for global sales, driven by a 3% rise in consumer traffic and a 2% rise in average spending.&nbsp;</p>



<p>The company is working on cutting costs and launching new products that will help improve sales. There is ample cash flow, which helps support the steady dividends. For a stock trading at $88, a dividend yield of 2.57% isn&rsquo;t bad. This is one of the top restaurant stocks offered at a huge discount.&nbsp;</p>



<h2>Domino&rsquo;s Pizza (DPZ)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/dpz1600-300x169.jpg" alt="A tall Domino's Pizza (DPZ) sign stands in Eau Claire, Wisconsin."><div>Source: Ken Wolter / Shutterstock.com</div></div><p>At its 52-week high, <strong>Domino&rsquo;s Pizza&nbsp;</strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/dpz-stock-quote/"><strong>DPZ</strong></a></span>) has been soaring. DPZ stock is up 22% YTD and 53% in the year. Domino&rsquo;s Pizza is a leading fast-food restaurant that has seen sales, revenue and market share expand.&nbsp;</p>



<p>As the world&rsquo;s biggest pizza company, it always expands into new markets and has carved a loyal fanbase. Eating pizza will never go out of fashion, and the company will always stay relevant. Out of the total locations, about 99% are owned by franchises, meaning Domino&rsquo;s earns royalties and fees without incurring any operating costs. </p>



<p>This has also helped the company to open more locations in the past few years. Its franchises are making a lot of money, so there will be more demand to open them across new locations. Domino&rsquo;s is a low-margin and asset-light business, making it a forever stock to own.&nbsp;</p>



<p>Trading at $505, the stock has the potential to keep soaring higher as consumer spending improves. The stock also enjoys a dividend yield of 1.19% and has enough liquidity to keep the dividends going.&nbsp;</p>



<h2>PepsiCo (PEP)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/pep-pepsico-1600-300x169.png" alt="Pepsi (PEP) Factory in Samara, Russia. Pepsi logo on a blue warehouse."><div>Source: FotograFFF / Shutterstock</div></div><p><strong>PepsiCo</strong>&nbsp;(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/pep-stock-quote/"><strong>PEP</strong></a></span>) is a top restaurant stock to own because of the huge umbrella of brands it owns. The company is more than a beverage giant; it generates significant revenue from Frito-Lay and Quaker Oats in Northern America. PepsiCo is a global brand with a rich history, and the company has steadily diversified to ensure that it meets the changing needs of consumers.&nbsp;</p>



<p>The company has ensured steady market expansion and revenue growth by diversifying into snacks and healthy foods. We will see substantial numbers once consumer spending improves and the summer months set in. The company has been able to scale due to its diversified businesses and the growth in its international operations. I am expecting another strong year of growth in 2024.&nbsp;</p>



<p>Even if the consumption of aerated beverages drops, Pepsi can make money from the snacks business. Trading at $169, the stock has been moving sideways over the past six months and is a dividend aristocrat. PEP enjoys a dividend yield of 2.98%, and its dividends have increased for over 50 years.&nbsp;</p>



<h2>Chipotle Mexican Grill (CMG)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/03/cmg1600-300x169.png" alt="Chipotle - Sign on building, CMG stock"><div>Source: Retail Photographer / Shutterstock.com</div></div><p><strong>Chipotle Mexican Grill</strong>&nbsp;(NYSE:<a href="https://investorplace.com/stock-quotes/cmg-stock-quote/"><strong>CMG</strong></a>), a top fast-food chain offering healthy meals, has more than 3,400 locations and aims to open more this year. It opened 271 new restaurants in 2023 and has a target of opening 285-315 in 2024. While the stock is one of the most expensive restaurant stocks, it trades at $2,895 but looks very tasty. </p>



<p>It is up 28% YTD, driven by exceptional quarterly results, and has soared 66% in the year. Those who bought the stock during the pandemic lows will be taking home big gains right now. The company saw a 15.4% YOY rise in revenue to hit $2.5 billion, and the EPS increased by 27% YOY to reach $10.21.</p>



<p>The company has announced a <a href="https://www.prnewswire.com/news-releases/chipotle-board-of-directors-approves-50-for-1-stock-split-302092524.html">50-for-1 stock split</a>, bringing the stock price lower in the coming months. Wall Street expects the company to keep growing earnings, which will help the stock move higher.&nbsp;</p>



<h2>Shake Shack (SHAK)</h2>



<div><img width="300" height="150" src="https://investorplace.com/wp-content/uploads/2017/08/shake-shack-inc-shak-stock-ipsize-300x150.jpg" alt=""><div>Source: Shutterstock</div></div><p>The restaurant chain <strong>Shake Shack</strong>&nbsp;(NYSE:<span><a href="https://investorplace.com/stock-quotes/shak-stock-quote/"><strong>SHAK</strong></a></span>) is expanding its market share and is ready to <a href="https://globalnews.ca/news/9569752/shake-shack-canada-toronto-first-location/#">enter Canada</a>. Known for its delicious burgers, Shake Shack offers unique menu items, making it more popular than its competitors. </p>



<p>SHAK stock is trading for $102 and has soared 39% YTD. The stock went from $68 in January to over $100 today, and this is one restaurant stock that has kept steadily moving upwards throughout the past year.&nbsp;The stock gained after the company reported impressive <a href="https://www.restaurantbusinessonline.com/operations/shake-shack-stock-jumps-26-after-better-expected-year-end-report">quarterly results</a>. While they weren&rsquo;t record-breaking, the guidance showed that the company was recovering quickly. </p>



<p>It saw a 2.8% rise in same-store sales and a 20% surge in revenue to hit $286.2 million, a little over the estimates. The company reported an EPS of $0.02, a strong improvement from the loss of $0.06 in the same quarter of the previous year. Shake Shack&rsquo;s upward rally is set to continue as consumer spending improves this year.&nbsp;</p>



<h2>Restaurant Brands International (QSR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/qsr-stock-300x169.jpg" alt="A photo of a Burger King light-up sign outside a Burger King restaurant representing QSR stock."><div>Source: Savvapanf Photo / Shutterstock.com</div></div><p>If you truly want to invest in a company that benefits from consumer sentiment, <strong>Restaurant Brands International&nbsp;</strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/qsr-stock-quote/"><strong>QSR</strong></a></span>) is my top pick. The company owns a large umbrella of brands that continue to generate revenue. Its exposure to the top four brands, including Burger King, Tim Hortons, Popeye&rsquo;s and Firehouse Subs, makes it a world-class business. </p>



<p>The company aims to grow to over <a href="https://www.bloomberg.com/news/articles/2024-02-15/burger-king-owner-qsr-shoots-for-60-billion-in-global-sales-by-2028">40,000 locations</a> by 2028 and has a robust cash flow profile, which allows for steady dividend payouts. QSR stock is exchanging hands for $76 and looks highly undervalued. It has a dividend yield of 3.03%, which will attract passive income investors. </p>



<p>The company is spending on <a href="https://usa.cateringinsight.com/burger-king-set-for-huge-remodeling-project-after-1-billion-play/">remodeling its Burger King restaurants</a> and investing in marketing and advertising to drive sales. If you want to invest in only one restaurant stock, this is the stock to own. The diversified business will ensure steady growth and passive income.&nbsp;</p>



<p><em>On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.</em></p>
<div><p>Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/the-restaurant-revival-7-stocks-poised-to-feast-on-increasing-consumer-spending/">The Restaurant Revival: 7 Stocks Poised to Feast on Increasing Consumer Spending</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

The Restaurant Revival: 7 Stocks Poised to Feast on Increasing Consumer Spending

Domino's Pizza: Solid Performance, Yet Valuation Concerns Persist

Domino's Pizza: Strong Dividend Growth At A High Valuation

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Dividend investing has proved itself to be one of the best, most reliable strategies to amassing wealth. Because stocks beat out every other asset class over the long haul, and <a href="https://investorplace.com/2024/04/7-stocks-to-buy-on-the-brink-of-becoming-dividend-royalty/">dividend-paying stocks outperform</a> those that don&rsquo;t make a payout, you will position yourself for generating riches by buying dividend <a href="https://investorplace.com/stock-types/growth-stocks/">growth stocks</a>.</p>



<p>However, <a href="https://investorplace.com/stock-types/dividend-stocks/">you shouldn&rsquo;t just buy</a> any dividend growth stocks. That are lots of income stocks that will cut or suspend their payout at the slightest sign of turmoil. On the other end are companies willing to go to the mat to defend their dividend. During the pandemic, <strong>Exxon Mobil</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/xom-stock-quote/"><strong>XOM</strong></a></span>) was one of only a handful of oil and gas companies that maintained its payout and even grew the dividend.</p>



<p>Yet that&rsquo;s not enough either. What investors want are dividend growth stocks. Those are companies that reward shareholders with both dividend increases and capital appreciation. Below are three dividend growth stocks you should buy today to create a portfolio of wealth to retire on.</p>



<h2>Dividend Growth Stocks to Buy: Agree Realty (ADC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/12/shutterstock_1392565235-300x169.png" alt="Agree Realty Corporation (ADC) logo visible on display screen."><div>Source: Pavel Kapysh / Shutterstock.com</div></div><p>The first dividend growth stock to buy now is real estate investment trust (<span>REIT</span>) <strong>Agree Realty </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/adc-stock-quote/"><strong>ADC</strong></a></span>). It is arguably one of the best REITs on the market to reward you today and tomorrow.</p>



<p>Publicly traded since 1994, Agree Realty ia a consistent, well-balanced REIT that has generated 11.8% compound annual total returns for investors. It also enjoyed 6.1% compound annualized dividend growth during that time.</p>



<p>Agree has such a <a href="https://filecache.investorroom.com/mr5ir_agreerealty/434/ADC%20Investor%20Presentation%20-%20April%202024.pdf">strong track record</a> because its adjusted funds from operations (<span>AFFO</span>) per share has grown at an annual rate of 7%. That&rsquo;s better than many of its peers, including <strong>Realty Income</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/o-stock-quote/"><strong>O</strong></a></span>), which has grown AFFO per share by 5% annually. AFFO is a key metric for REITs, much like free cash flow is for other companies.&nbsp;</p>



<p>Agree Realty is also well diversified with its top three sectors accounting for only 27% of the total portfolio. It focuses on tire and auto centers, home improvement and grocery. Its top tenants are <strong>Walmart</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/wmt-stock-quote/"><strong>WMT</strong></a></span>), <strong>Tractor Supply</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/tsco-stock-quote/"><strong>TSCO</strong></a></span>) and <strong>Dollar General</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/dg-stock-quote/"><strong>DG</strong></a></span>). Yet no one sector accounts for more than 10% of the total. Again, Agree Realty stock is well diversified protecting its downside.</p>



<p>High interest rate environments such as we&rsquo;re in weigh heavily on REITs. That explains why ADC stock is down 10% year to date but that just makes it a great price to buy this tremendous dividend growth stock.</p>



<h2>Lowe&rsquo;s (LOW)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/L1600-300x169.jpg" alt="the front of a Lowe's store"><div>Source: Helen89 / Shutterstock.com</div></div><p>Home improvement center <strong>Lowe&rsquo;s</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/low-stock-quote/"><strong>LOW</strong></a></span>) is the second dividend growth stock to consider for your portfolio. It has far outperformed the <strong>S&amp;P 500</strong> over the past decade, offering investors total returns of 514%, or double the broad market index&rsquo;s 235% returns.</p>



<p>Lowe&rsquo;s has steadily <a href="https://investorplace.com/2024/03/3-dividend-aristocrats-with-the-largest-10-year-dividend-growth-rates/">increased the amount of its dividend</a> every year. Back in 2014, it was paying a quarterly dividend of just 18 cents per share but today the payout is worth $1.10 per share, a six-fold increase. At the same time, the share price quintupled. That&rsquo;s a powerful combination for your portfolio.</p>



<p>The retailer is, in fact, a Dividend King, or a company that has <a href="https://investorplace.com/2024/01/cash-flow-kings-3-dream-dividend-stocks-for-steady-income/">raised its dividend for 50 years</a> or more. Yet as noted earlier, it&rsquo;s not enough to increase it. You also want the payout well supported, which Lowe&rsquo;s offers too. While the dividend has grown at an 18% compound annual growth rate (<span>CAGR</span>) over the last 10 years, Lowe&rsquo;s free cash flow (<span>FCF</span>) has expanded by more than 6% annually. That&rsquo;s actually quite good for a mature business like the home improvement center. FCF per share grew smartly over that time as well, a strong indication Lowe&rsquo;s stock and dividend will continue rising in the future.</p>



<h2>Domino&rsquo;s (DPZ)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/dpz1600-300x169.jpg" alt="A tall Domino's Pizza (DPZ) sign stands in Eau Claire, Wisconsin."><div>Source: Ken Wolter / Shutterstock.com</div></div><p>The last dividend growth stock to buy may seem surprising but pizza shop <strong>Domino&rsquo;s</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/dpz-stock-quote/"><strong>DPZ</strong></a></span>) has been a monster stock to own. Over the past decade, it has served up total returns of over 630% in large part because it has been growing its dividend at a CAGR of 20% a year. Its quarterly dividend has grown from 25 cents per share to $1.51 per share today. It yields 1.2% annually.</p>



<p>Investors might initially be put off by that but if you consider its yield on cost, or the amount the dividend yields based on when you purchased it, Domino&rsquo;s is a fantastic wealth generator. A $1,000 investment 10 years ago nabbing that 1.2% would be seeing 8.1% yields today. Furthermore you wouldn&rsquo;t have even had to reinvest dividends to achieve that. That&rsquo;s the <a href="https://investorplace.com/2024/03/ta-da-3-picks-to-turn-1000-into-8000-in-annual-passive-income/">power dividend growth stocks</a> deliver.</p>



<p>Domino&rsquo;s trades at a premium today because it nailed down just how to grow its business. It floods an area with stores in a strategy called &ldquo;fortressing&rdquo; that <a href="https://investorplace.com/2024/03/dividend-delights-3-stocks-offering-investors-a-double-digit-raise-in-2024/">builds brand awareness with consumers while reducing costs such as marketing</a>. Although an individual store may do less business, the company itself prospers.</p>



<p>With free cash flow growing 12% annually, the payout is well-supported. And because the FCF payout ratio is just 35%, there are many more years of dividend growth and capital appreciation to come.</p>



<p><em>On the date of publication, Rich Duprey held a LONG position in XOM, O and LOW stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.</em></p>
<div><p>Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L&rsquo;Express, and numerous other news outlets.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/passive-income-powerhouses-3-dividend-growth-stocks-to-buy-now/">Passive Income Powerhouses: 3 Dividend Growth Stocks to Buy NOW</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Passive Income Powerhouses: 3 Dividend Growth Stocks to Buy NOW

California's fast-food chains weigh options after AB 1228

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<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Restaurants and their stocks have been on a rollercoaster since the Covid-19 pandemic struck in 2020. Over the past four years, companies running restaurant chains have had to contend with store closures, operating at reduced capacity, moving their operations almost entirely online, reopening physical locations, food inflation, high interest rates, and consumers tightening their purse strings. The results have roiled <a href="https://investorplace.com/industries/consumer-discretionary/retail/restaurant/">restaurant stocks</a> and made them <a href="https://www.theglobeandmail.com/investing/markets/stocks/BLMN/pressreleases/20975510/restaurant-stocks-go-on-salewhich-are-really-on-the-value-menu/">difficult securities to own</a>. </p>



<p>So far in 2024, the <a href="https://www.barrons.com/market-data/indexes/sp500.25301040?countrycode=xx"><strong>S&amp;P 500</strong> Restaurant Sub-Index</a> is about flat on the year (down 1%). However, over the last six months, the index has risen 14%, showing notable improvement in the sector. Among restaurant stocks, a handful continue to outperform driven by strong sales and profits that have exceeded Wall Street forecasts. There are also several restaurant companies that have undertaken multi-year growth strategies coming out of the pandemic and are worth a look. </p>



<p>Here are three restaurant stocks to buy now: Q2 edition.   </p>



<h2>Restaurant Brands International (QSR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/qsr-stock-300x169.jpg" alt="A photo of a Burger King light-up sign outside a Burger King restaurant representing QSR stock."><div>Source: Savvapanf Photo / Shutterstock.com</div></div><p>There&rsquo;s an opportunity to buy shares of <strong>Restaurant Brands International</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/qsr-stock-quote/"><strong>QSR</strong></a></span>) on weakness. So far this year, QSR stock is down 7%. The decline comes despite the company&rsquo;s latest financial results beating analyst expectations on the top and bottom lines, and as it successfully executes a multi-year <a href="https://www.reuters.com/business/retail-consumer/burger-king-parent-restaurant-brands-inches-past-quarterly-sales-estimates-2024-02-13/">revitalization of the <strong>Burger Kin</strong>g franchise</a>. Restaurant Brands owns <strong>Popeyes Chicken</strong>, <strong>Firehouse Subs</strong> and the <strong>Tim Hortons</strong> coffee chain, in addition to its flagship Burger King outlets.</p>



<p>For the <a href="https://www.rbi.com/English/news/news-details/2024/Restaurant-Brands-International-Inc.-Reports-Full-Year-and-Fourth-Quarter-2023-Results/default.aspx">final quarter of 2023</a>, Restaurant Brands International reported earnings per share (<a href="https://investorplace.com/stock-quotes/eps-stock-quote/"><strong>EPS</strong></a>) of 75 cents versus 73 cents that was expected on Wall Street. Revenue came in at $1.82 billion compared to $1.81 billion that was forecast. Total sales were up 8% from a year earlier. The company said it is seeing positive results from its Burger King turnaround strategy that includes remodeling restaurants and spending more money on advertising to drive customer traffic and sales.</p>



<p>The <a href="https://www.tipranks.com/stocks/tse:qsr/forecast">average price target</a> on QSR stock among 22 Wall Street analysts is $115.40, which is 18% higher than where it currently trades. </p>



<h2>Chipotle Mexican Grill (CMG)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/03/cmg1600-300x169.png" alt="Chipotle - Sign on building, CMG stock"><div>Source: Retail Photographer / Shutterstock.com</div></div><p><strong>Chipotle Mexican Grill</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/cmg-stock-quote/"><strong>CMG</strong></a>) is riding high on strong earnings and plans to split its stock for the first time. The restaurant chain that specializes in Mexican cuisine has announced <a href="https://www.cbsnews.com/news/chipotle-stock-price-split-cmg-restaurant/">a 50-for-1 stock split </a>to be executed in June of this year. The stock split will be the first ever for Chipotle, which went public in 2006 and whose shares are currently trading at just under $3,000.00, putting them out of reach for many retail investors. The 50-for-1 stock split will lower Chipotle&rsquo;s share price to around $60.</p>



<p>Chipotle&rsquo;s stock is expected to begin trading on a split adjusted basis when the market opens on June 26. News of the stock split comes as Chipotle continues to issue <a href="https://www.cnbc.com/2024/02/06/chipotle-mexican-grill-cmg-q4-2023-earnings.html">strong financial results</a> that almost always beat Wall Street expectations. </p>



<p>Most recently, Chipotle reported EPS of $10.36 compared to $9.75 that was expected amongst analysts. Revenue came in at $2.52 billion versus $2.49 billion that was forecast on Wall Street. Sales were up 15% from a year earlier. CMG stock has risen 67% in the last 12 months, including a 32% year-to-date gain. </p>



<h2>Domino&rsquo;s Pizza (DPZ)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/dpz1600-300x169.jpg" alt="A tall Domino's Pizza (DPZ) sign stands in Eau Claire, Wisconsin."><div>Source: Ken Wolter / Shutterstock.com</div></div><p><strong>Domino&rsquo;s Pizza</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/dpz-stock-quote/"><strong>DPZ</strong></a>) is another restaurant stock that is flying high. Over the past year, DPZ stock has increased 50%, including a 20% gain since January of this year. Domino&rsquo;s also continues to deliver better-than-expected financial results, and recently <a href="https://www.investors.com/news/dominos-pizza-increases-quarterly-dividend-by-25-earnings-top-views/">raised its quarterly dividend</a> by 25%. Domino&rsquo;s now pays its shareholders a quarterly dividend of $1.51 a share, up from $1.21 previously. The pizza delivery giant has also announced a new $1 billion stock buyback program.</p>



<p>The dividend increase and stock buyback were announced along with <a href="https://www.barrons.com/articles/dominos-pizza-stock-price-earnings-0add333f">strong Q4 2023 results</a>. Domino&rsquo;s Pizza achieved EPS of $4.48, which topped expectations of $4.38. Revenue amounted to $1.40 billion, which about matched forecasts on Wall Street. </p>



<p>Same-store sales in the U.S. grew by 2.8% from a year earlier. Late last year, Domino&rsquo;s management team announced a new growth strategy that aims to open 1,100 stores through 2028 and increase its retail sales by 7% a year on average.</p>



<p><em>On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.</em></p>
<div><p>Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/3-restaurant-stocks-to-buy-now-q2-edition/">3 Restaurant Stocks to Buy Now: Q2 Edition</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

3 Restaurant Stocks to Buy Now: Q2 Edition

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>There is always a constant search for dependable prospects that offer stability and advancement. In the middle of this hunt, <a href="https://investorplace.com/stock-types/dividend-stocks/">dividend stocks</a>&nbsp;with growth stand out as possible bright spots that give investors a means to achieve solid returns and reliable income streams. Three exceptional businesses light up the scene in this domain with their steadfast dedication to growth and shareholder rewards.</p>



<p>The first one, a key player in the communication services industry, demonstrates a strategic shift towards content and experiences in addition to steady dividend growth. Second, with its aggressive shop growth plan locally and globally, the next one is the perfect example of market expansion. Additionally, its global retail sales have grown considerably, demonstrating its ability to take market share.</p>



<p>Lastly, the third company, a behemoth in the healthcare industry, exhibits a strategic vision through its regional growth and acquisitions. Meanwhile, its notable volume growth in strategic areas highlights its effective market penetration tactics. Taken as a whole, these businesses represent the best dividend growth investment.&nbsp;</p>



<h2><strong>Comcast (CMCSA)</strong></h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/cmcsa-stock-2-300x169.jpg" alt="Comcast (CMCSA) sign on the Comcast regional headquarters in St. Paul, Minnesota."><div>Source: Ken Wolter / Shutterstock.com</div></div><p>Its financial standing is the foundation for&nbsp;<strong>Comcast&rsquo;s</strong>&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/cmcsa-stock-quote/"><strong>CMCSA</strong></a>) prospective dividend increase, and the stock provides a&nbsp;<a href="https://www.dividend.com/stocks/communications/telecommunication/telecom-carriers/cmcsa-comcast/" target="_blank">3.2% forward dividend yield</a>. Earnings per share (<span>EPS</span>) showed a constant upward trend, with adjusted EPS rising by&nbsp;<a href="https://www.cmcsa.com/static-files/050e7ae9-5e03-46d7-a39b-a1fff353faea" target="_blank">2.4% to 84 cents&nbsp;</a>for the fourth quarter and 9.3% to $3.98 for 2023.</p>



<p>Moreover, the free cash flow demonstrated solid cash creation capabilities, which was $1.7 billion in Q4 and $13 billion in 2023. The Total Return of Capital to Shareholders shows a dedication to rewarding shareholders, reaching $4.7 billion in Q4 and $15.8 billion in 2023.</p>



<p>Comcast includes media, theme parks and studios under its Content &amp; Experiences section, supporting the company&rsquo;s overall growth plan. Theme parks had record earnings as adjusted EBITDA for content and experiences climbed by 2.3%. Similarly, Peacock paying subscribers jumped almost 50% to 31 million, with 3 million net new additions during Q4. Thus, Peacock&rsquo;s top-line increased by&nbsp;<a href="https://www.cmcsa.com/static-files/7587b598-9bcf-40bb-b8c1-dc8545ffaab8" target="_blank">57%, surpassing $1 billion</a>.</p>



<p>To conclude, Comcast&rsquo;s streaming approach has progressively captured a rising market lead in the streaming sector by utilizing its content collection. Hence, this can be seen in the solid rise in Peacock customers and income.</p>



<h2><strong>Domino&rsquo;s (DPZ)</strong></h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/dpz1600-300x169.jpg" alt="A tall Domino's Pizza (DPZ) sign stands in Eau Claire, Wisconsin."><div>Source: Ken Wolter / Shutterstock.com</div></div><p>The net store growth of&nbsp;<strong>Domino&rsquo;s</strong>&nbsp;(NYSE:<a href="https://investorplace.com/stock-quotes/dpz-stock-quote/"><strong>DPZ</strong></a>) signifies its expansion strategy and fundamental capacity to gain market share in local and foreign markets. The business yields a&nbsp;<a href="https://www.dividend.com/stocks/consumer-discretionary/gaming-lodging-restaurants/restaurants/dpz-dominos-pizza/" target="_blank">1.2% forward dividend yield</a>.&nbsp;</p>



<p>Additionally, with&nbsp;<a href="https://ir.dominos.com/static-files/d91871d8-3c13-439f-bc86-b1efe79373d6" target="_blank">711 net new stores</a>&nbsp;established for 2023, the firm added 394 net new stores internationally in Q4 2023. With the Russian market closed, worldwide net stores increased by 870 in 2023. The company has boosted its market lead and taken advantage of growth prospects by adding additional locations and broadening its coverage.&nbsp;</p>



<p>Furthermore, excluding the forex effect, the company&rsquo;s global retail sales increased by 4.9% in Q4 and 5.4% throughout 2023. This growth rate demonstrates Domino&rsquo;s capacity to draw clients and increase revenue in its foreign regions.&nbsp;</p>



<p>In the U.S., same-store sales increased by&nbsp;<a href="https://finance.yahoo.com/news/domino-pizza-inc-nyse-dpz-132947681.html" target="_blank">2.8% during 2023&rsquo;s Q4</a>&nbsp;and by 1.6% overall. Excluding the influence of exchange rates, same-store sales increased globally by 0.1% during Q4 and 1.7% over 2023. In sum, Domino&rsquo;s successful pricing tactics, creative menu offerings and customer engagement initiatives are evident in its ability to produce positive same-store sales growth.&nbsp;</p>



<h2><strong>Amgen (AMGN)</strong></h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/AMGN1600-300x169.jpg" alt=""><div>Source: Shutterstock</div></div><p><strong>Amgen</strong>&lsquo;s&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/amgn-stock-quote/"><strong>AMGN</strong></a>) strategic acquisitions, especially the acquisition of Horizon Therapeutics, have been the core element in boosting top-line growth and diversifying its line of products. The stock is attached with a&nbsp;<a href="https://www.dividend.com/stocks/health-care/biotech-pharma/biotech/amgn-amgen/" target="_blank">3.4% forward dividend&nbsp;</a>yield. From Oct. 6 to Dec. 31, revenues from the Horizon acquisition&nbsp;<a href="https://investors.amgen.com/news-releases/news-release-details/amgen-reports-fourth-quarter-and-full-year-2023-financial" target="_blank">generated $954 million</a>. This propelled an increase in overall product sales. Innovative drugs that Amgen purchased from Horizon, such as Tepezza and Krystexxa, saw solid demand and uptake that increased company revenue.</p>



<p>Moreover, Amgen has demonstrated its ability to maximize the value of strategic acquisitions and leverage synergies. This boosts its competitive position in the market by effectively integrating acquired assets from Horizon. Amgen has shown a solid lead in breaking into new markets and broadening its geographic reach, especially outside the U.S. Thus, Q4 delivered a 26% uplift in U.S. volume and a 15% increase in volume outside the U.S., with the Asia-Pacific area seeing the most growth.&nbsp;</p>



<p>Overall, numerous brands, such as Evenity and Repatha, had&nbsp;<a href="https://finance.yahoo.com/news/amgen-inc-nasdaq-amgn-q4-161655872.html" target="_blank">solid volume growth</a>&nbsp;in the U.S. and abroad. Lastly, Amgen&rsquo;s effective market penetration and commercial execution tactics are demonstrated by its ability to generate considerable volume increases in important geographic regions.</p>



<p><em><em>On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.</em></em></p>
<div><p>Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/the-dividend-goldmine-3-shining-stocks-with-growing-payouts/">The Dividend Goldmine: 3 Shining Stocks With Growing Payouts</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

The Dividend Goldmine: 3 Shining Stocks With Growing Payouts

Wells Fargo analyst Zachary Fadem maintained a Hold rating on Domino's Pizza (DPZ – Research Report) today and set a price target of $475.00. The c...

Domino's Pizza (DPZ) Gets a Hold from Wells Fargo

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Because dividend investing has such an impressive track record of beating non-dividend-paying stocks, many investors buy Dividend Aristocrats for their portfolios. It&rsquo;s not a bad strategy to begin with.</p>



<p>Dividend Aristocrats are stocks on the <strong>S&amp;P 500</strong> that have <a href="https://investorplace.com/2024/04/7-stocks-to-buy-on-the-brink-of-becoming-dividend-royalty/">consistently raised their payouts</a> for 25 years or more. Studies show stocks that initiate a dividend and then raise them over time have outperformed all other stocks over time. Yet, there are limits to the strategy.</p>



<p>As <strong>Walgreens Boots Alliance</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/wba-stock-quote/"><strong>WBA</strong></a></span>) showed earlier this year, even dividend royalties can run into problems. The pharmacy chain had increased its payout for almost 50 years but slashed its dividend nearly in half because it ran into money troubles. <strong>AT&amp;T</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/t-stock-quote/"><strong>T</strong></a></span>) cut its dividend in half when it spun off its entertainment division into <strong>Warner Bros Discovery</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/wbd-stock-quote/"><strong>WBD</strong></a></span>).</p>



<p>So, just focusing on how long a stock has raised its dividend is not enough. What investors need to do is focus on dividend <a href="https://investorplace.com/stock-types/growth-stocks/">growth stocks</a> that can afford to keep making their payouts. Growing a dividend at double-digit rates and generating enough free cash flow (<span>FCF</span>) to maintain the payout ensures a business will keep sharing its wealth with investors.</p>



<p>The following seven dividend growth stocks also have the free cash flow (<a href="https://investorplace.com/stock-quotes/fcf-stock-quote/"><strong>FCF</strong></a>) to back up the payments.</p>



<h2>LVMH Moet Hennessy Louis Vuitton (LVMUY)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/08/lvmh_lvmuy_1600-300x169.jpg" alt="The logo for the luxury goods holding company LVMH is seen through a magnifying glass on the company's website."><div>Source: Postmodern Studio / Shutterstock.com</div></div><p>Luxury goods retailer LVMH Moet Hennessy Louis Vuitton (OTCMKTS:<span><a href="https://investorplace.com/stock-quotes/lvmuy-stock-quote/"><strong>LVMUY</strong></a></span>) is one of the first dividend growth stocks to consider for your portfolio. The owner of Fendi, Dior and Dom Perignon has a 10-year compounded annual growth rate (<span>CAGR</span>) for its dividend of 12.59% while growing FCF at a 13.9% CAGR. FCF is important for dividend investors because that&rsquo;s how companies support their payout. There are only five things a business can do with the cash it has left over after paying its bills and paying a dividend is one of them.</p>



<p>LVMH is one of the top stars in luxury retail, offering goods from apparel and watches to alcohol and textiles. While it <a href="https://investorplace.com/2024/02/money-trees-3-top-stocks-to-buy-for-5000-in-annual-dividend-income/">tends to be recession-resistant,</a> the company is not bulletproof. The rich can hold out much longer than the rest of us, but even inflation and high interest rates catch up with the uber-well-to-do, too.&nbsp;</p>



<p>That&rsquo;s the situation with LVMH, which reported slowing first-quarter sales. But that&rsquo;s not surprising considering the huge growth it enjoyed last year in its first post-pandemic-free quarter. Because comparisons get easier later on, expect LVMH stock to rebound sharply. In the meantime, collect the quarterly dividend that yields 1.7% annually.</p>



<h2>UnitedHealth Group (UNH)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/unh1600-300x169.jpg" alt="The UnitedHealth (UNH) headquarters in Minnetonka, Minnesota."><div>Source: Ken Wolter / Shutterstock.com</div></div><p>Health insurer <strong>UnitedHealth Group</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/unh-stock-quote/"><strong>UNH</strong></a></span>) is the next dividend growth stock investors should have on their list. It&rsquo;s another recession-resistant issue because healthcare is something you can&rsquo;t ignore, at least not for very long. Doctor visits, prescriptions and emergency services are all vital for survival, meaning the <a href="https://investorplace.com/2024/01/3-stocks-to-turn-1000-into-10000-in-10-years/">insurer will always be in demand.</a></p>



<p>That&rsquo;s played out with UnitedHealth stock, which has grown its revenue, profits and dividend in excess of 10% annually over the past decade. The dividend had a 21% CAGR over that period, while its current FCF ratio at the end of 2023 was 10%.</p>



<p>UNH views home healthcare, in particular, as a driver of the company&rsquo;s future growth. Its Optum health services unit will be a key component for its expansion. UnitedHealth, though, has been scooping up several services businesses related to the niche, including&nbsp;LHC Group and <strong>Amedisys</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/amed-stock-quote/"><strong>AMED</strong></a></span>). However, the latter deal is getting scrutinized more closely by regulators. It is not essential to UnitedHealth Group&rsquo;s outlook, even if the deal is quashed.</p>



<h2>Dick&rsquo;s Sporting Goods (DKS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/dks-stock-1600-300x169.png" alt="Exterior of Dick's Sporting Goods retail store including sign and logo."><div>Source: George Sheldon via Shutterstock</div></div><p>Outdoor action retailer <strong>Dick&rsquo;s Sporting Goods</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/dks-stock-quote/"><strong>DKS</strong></a></span>) continues building on its impressive record of dividend growth. Its average payout was 27% for the last 10 years, while it generated FCF at the white-hot rate of 33% annually.</p>



<p>Even when sales faltered, such as when it chose to get caught up in the gun control debate and eliminate firearms from its stores, Dick&rsquo;s kept growing the dividend. A boycott by hunters and other shooting sports enthusiasts sent sales reeling for a year. However, Dick&rsquo;s chose to focus on higher margin sales, such as baseball apparel and equipment, which eventually padded its bottom line. Firearms were a popular item but were a low-margin business.</p>



<p>Today, Dick&rsquo;s <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/1089063/000108906324000011/dks-20240313.htm">business is robust.</a> Net sales jumped 5% last year, generating gross profit growth of 14.4%. The retailer also raised its dividend by 10% to $1.10 per share each quarter.</p>



<h2>Domino&rsquo;s (DPZ)&nbsp;</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/dominos-pizza-stock-large-300x169.jpg" alt="Domino's (DPZ) sign on a building at night"><div>Source: Shutterstock</div></div><p>Pizza delivery specialist <strong>Domino&rsquo;s</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/dpz-stock-quote/"><strong>DPZ</strong></a></span>) has a history of raising its payout at high double-digit rates for the past decade, but recently announced it was increasing the payout by nearly 25% this year. Business has been strong for the pizza shop as it floods the market with stores in a strategy it calls &ldquo;fortressing.&rdquo;</p>



<p>By creating a <a href="https://investorplace.com/2024/03/dividend-delights-3-stocks-offering-investors-a-double-digit-raise-in-2024/">ubiquitous feeling about its presence,</a> Domino&rsquo;s keeps its stores uppermost in consumers&rsquo; minds when they want to order food away from home. It also saves on marketing costs, as one ad covers many stores. That&rsquo;s how sales rose 4% in 2023, but profits increased 15%.</p>



<p>Domino&rsquo;s has a near-20% CAGR for its dividend but also a better-than 12% increase in FCF. Like its big dividend hike last year, FCF surged over 25%, easily supporting the payout. With an FCF payout ratio under 35%, the pizzeria has plenty of room for future double-digit dividend increases. Look for Domino&rsquo;s to grow its dividend for many years to come.</p>



<h2>AbbVie (ABBV)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/01/abbv1600-300x169.png" alt="Closeup of AbbVie (ABBV) building corporate office, an American biopharmaceutical company with its headquarters in Lake Bluff, Illinois, USA"><div>Source: Valeriya Zankovych / Shutterstock.com</div></div><p>Pharmaceutical stock <strong>AbbVie</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/abbv-stock-quote/"><strong>ABBV</strong></a></span>) was granted Dividend Aristocrat status because it was spun off from <strong>Abbott Labs</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/abt-stock-quote/"><strong>ABT</strong></a></span>) a decade ago. However, the offspring has gone on to outshine the former parent since then. Where Abbott Labs has a solid 9.6% dividend CAGR for the last decade, AbbVie has a 13.9% CAGR over the same period. Moreover, AbbVie is generating significantly more free cash flow as well. It produced $22 billion in FCF last year versus just $5 billion from Abbott Labs.</p>



<p>While Abbott&rsquo;s record is still a testament to its own business and is a worthwhile stock to own, AbbVie is <a href="https://investorplace.com/2024/03/3-dividend-aristocrats-with-the-largest-10-year-dividend-growth-rates/">growing at a blistering pace</a> and is even more attractive. It still produces mountains of cash, growing FCF at a 14% CAGR, it remains a stock to own now and for the long run. Even as sales of its blockbuster arthritis therapy Humira slowly ease up after losing patent protection, the pharma stock still has a portfolio of billion-dollar drugs that are taking its place.</p>



<h2>Automatic Data Processing (ADP)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/adp-1600-300x169.png" alt="In this photo illustration the stock market information of Automatic Data Processing, Inc. displays on a smartphone with the logo of Automatic Data Processing, Inc. ADP stock."><div>Source: IgorGolovniov / Shutterstock</div></div><p>Payroll leader <strong>Automatic Data Processing</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/adp-stock-quote/"><strong>ADP</strong></a></span>) may be a surprise stock for some. It seems such a sleepy business to have a decade-long run growing its dividend and FCF at double-digit rates. Some stocks become so well-known and are so commonplace that they simply blend into the background. Yet, ADP stock continues churning out profits and cash that pay for its dividend year in and year out.</p>



<p>While revenue has grown at just a 5% CAGR for the past decade, profit growth has doubled that and free cash flow grew nearly 10% annually. That&rsquo;s allowed the payroll company to raise its dividend by over 11% a year almost in the shadows. In that vein, ADP raised the payout another 12% for this year.</p>



<p>Many investors will look at ADP&rsquo;s 2.3% yield and scoff at buying it. What they need to realize is that 10 years ago, its payout was $1.79 per share. Over the years, the dividend has grown 287%, meaning an investor&rsquo;s yield on cost would have nearly quadrupled as well.&nbsp;</p>



<h2>Home Depot (HD)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/08/hd-stock-300x169.jpg" alt="Home Depot (HD) storefront on a sunny day"><div>Source: Jonathan Weiss / Shutterstock.com</div></div><p>Last, but investors shouldn&rsquo;t think of as least, is home improvement center <strong>Home Depot </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/hd-stock-quote/"><strong>HD</strong></a></span>). Although the retailer gets overshadowed by rival <strong>Lowe&rsquo;s</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/low-stock-quote/"><strong>LOW</strong></a></span>) 50-plus year history of increasing its own payout, Home Depot&rsquo;s recent record of raising its dividend is worth noting.</p>



<p>Home Depot has a 17% 10-year dividend growth CAGR compared to 20% at Lowe&rsquo;s. But Big Orange generated nearly twice as much FCF growth at 11.1% over that period as Big Blue did at 6.9%. Home Depot also generated $18 billion in FCF last year compared to $6.2 billion at Lowe&rsquo;s. So, it is growing bigger cash flows faster, which is an impressive feat.</p>



<p>That&rsquo;s likely because it has been the go-to location for professional contractors. Even in the face of rampant inflation that we&rsquo;ve seen over the past few years, which dampened the enthusiasm for home improvement projects, the retailer was able to continuously raise its payout. There aren&rsquo;t many businesses that could withstand the toll of high prices and high-interest rates, but Home Depot has stood tall through it all.</p>



<p><em>On the date of publication, Rich Duprey held a LONG position in WBA, T, WBD, LVMUY, ABBV and LOW stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines.</a></em></p>
<div><p>Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L&rsquo;Express, and numerous other news outlets.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/dividend-growth-stars-7-stocks-with-10-year-double-digit-rate-hikes/">Dividend Growth Stars: 7 Stocks With 10-Year Double-Digit Rate Hikes</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>