Hedgeye Live
We will be at Hedgeye Live – our first annual subscriber conference. It’s from May 12 – 15th at the Hyatt Regency in Greenwich, CT. In addition to all the other Hedgeye Live events, I’m hosting an exclusive “idea dinner” with attendees (capacity capped at 18), as well as a deep-dive breakout session Saturday morning If you’re interested in learning more/joining me at Hedgeye Live, contact .
DPZ Great Model; significant challenges
Removing DPZ and PZZA from the long list. Being long DPZ was a big miss as we expected some weakness in industry sales but the decent of the decline in delivery was more than we thought. The same trends are going to impact PZZA.
Same-store sales declined 3.6% in the U.S. during 1Q22 and same-store sales at international stores increased 1.2%. DPZ said its market basket pricing to stores increased 11.9% during 1Q22. International franchise revenues also increased due to international retail sales growth but were negatively impacted by changes in foreign currency exchange rates. Those increases were partially offset by lower U.S. store revenues due to a 1.4% decline in U.S. retail sales. The DPZ carry-out business was very strong in 1Q22 with US carry-out same-store sales +11.3% vs 1Q21, driven by both ticket and order growth. 1Q22 delivery same-store sales declined by 10.7% relative to 1Q21 driven by order count declines offset in part by higher tickets.
With CMG digital sales declining 4% there is a clear shift away from the more expensive digital/delivery business. We are staying short DASH.
