The Pizza delivery companies Domino's and Papa john’s reported healthy first-quarter financial results. Both the Pizza chain firms benefited greatly from the pandemic as more consumers ordered delivery during COVID-19.
The world's largest pizza chain Domino's Pizza (NYSE: DPZ) announced first-quarter financial results on April 29. The company total revenues increased from $873.1 million to $983.7 million year-over-year.
Earnings per share: $3.00 vs. $2.94 expected
Revenue: $983.7 million vs. $978.6 million expected
In April, the Dominos shares surged more than 13%. In the short term, if the bullish momentum continues the stock can push further up with the first potential target should be $437 followed by $450. On the downside, the first immediate support at $420 followed by $410/$388.
Papa John’s (NASDAQ: PZZA) announced financial results for the first quarter on May 06. The company revenue increased by 25% in the quarter to $511.7 million from $409.9 million a year ago. During the last quarter, the comparable store sales rose 26% in North America and 23% globally.
Earnings per share: $0.90 vs. $0.56 expected
Revenue: $511.7 million vs. $470 million expected
“We have been promoting it now for over four months, and we continue to see growth in that business, and we're going to continue to double down on it and continue to invest behind it,” Rob Lynch said.
The $PZZA currently supported at $90 and the resistance around $110. In the short term any break above $102 the next immediate resistance at $110 (all-time high). On the flip side, if the stock fails to break above $102, it will retreat to near the $90 area and then $85.
Yum Brands global sales spike by 18%
On the other hand, the Pizza Hut parent, Yum Brands (NYSE: YUM) reported strong first-quarter earnings. Yum Brands also operates the brands KFC, Taco Bell, and The Habit Burger Grill. The company’s worldwide sales increased by 11% and same-store sales grew 9% in the first quarter. Yum Brands reported $1.49 billion in revenue for the first quarter, an 18% increase over Q1 2020. During this quarter, Pizza Hut added 71 new restaurants.
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