Allison said Domino's is very fortunate to still be open and operating. Demand for their food has been very strong, he said, and that's why they're hiring over 10,000 new team members.
Domino's is also proud to be a part of Feed The Need, a program where they are donating 10 million slices of pizza to those in need.
When asked about the "new normal" after the economy reopens, Allison admitted it is difficult to predict at the moment. He said customers are likely to be very price conscious with unemployment so high, and social distancing may severely limit profitability for many restaurants.
We looked at the charts of DPZ on Monday where we wrote, "Take-out pizza seems to be highly coveted in this new normal. The charts of DPZ are constructive so traders should use available price weakness to go long or add to existing longs. Our price targets are $401 and the $451 area." The price of DPZ declined Thursday so let's review the charts again to see if that was a dip to buy.
In this daily bar chart of DPZ, below, we can see that not much has changed from Monday. The decline of Thursday has not broken the uptrend. Prices are still above the rising moving averages. Trading volume did increase but that is not unusual for an earnings release.
The On-Balance-Volume (OBV) line shows only a minor dip and the Moving Average Convergence Divergence (MACD) oscillator is still bullish.
In this updated weekly bar chart of DPZ, below, the picture remains bullish with all the indicators in a proper alignment and headed higher.
In this first Point and Figure chart of DPZ, below, we can see that prices retreated (column of O's) after making a new high for the move up. The $401 price target is the same as we saw on Monday.
In this weekly Point and Figure chart of DPZ, below, the decline on Thursday has yet to register. $451 is still the price target.
Bottom line strategy: No change - if you recently went long DPZ continue to hold and use a stop below $340 for now.