Domino’s Pizza Q1: U.S. Sales Dip 0.5%, International Up 3.7%, EPS Beats at $4.33

Local Market Commentary

Local markets were closed yesterday. On Friday, the JSE All Share Index rose 0.19%, closing at 90,720.33 points, its highest level since March 19, 2025. The Top 40 Index also gained 0.19%, ending at 83,413.7 points, reaching an all-time high.

European Market Commentary

European equities extended gains, with the STOXX 600 rising 0.5% for a fifth consecutive session—its longest winning streak since January—fuelled by optimism around easing U.S.-China trade tensions and anticipation of key earnings and inflation data. ECB policymaker Olli Rehn signalled potential rate cuts below neutral, citing U.S. tariffs as downside risks to inflation. In the UK, the CBI’s retail sales gauge improved to -8 in April from -41 in March, suggesting stabilising consumer activity despite ongoing concerns over growth and confidence.

U.S. Market Commentary

The S&P 500 ended Monday little changed in a volatile session, as pressure from megacaps offset optimism ahead of major earnings and economic data. While Q1 earnings are forecast to rise 10.9% year-on-year, many companies have flagged uncertainty stemming from U.S. trade policy, with 78 of 179 reporters issuing negative outlooks versus just 32 positive, per LSEG. Investors now turn to the PCE price index and crucial labour market data, including Friday’s U.S. payrolls report, for direction.

Asia Market Commentary

Asia-Pacific markets mostly advanced on Tuesday as investors monitored U.S. tariff impacts ahead of key Wall Street earnings and data. A CCPIT survey revealed nearly half of Chinese exporters intend to scale back U.S. exposure, with 75% shifting focus to emerging markets. South Korean auto stocks climbed after the U.S. announced eased tariffs on imported parts used in American-made vehicles, a move framed by Commerce Secretary Howard Lutnick as a win for domestic manufacturing and Trump's trade policy.

Commodity Market Commentary

Gold prices declined on Tuesday as easing U.S. trade tensions reduced demand for safe-haven assets, while investors awaited key U.S. economic data to gauge the Fed’s next move. Crude oil also fell, pressured by lowered demand expectations amid the prolonged U.S.-China trade war. Adding to bearish sentiment, OPEC+ members are expected to propose a second straight monthly output increase in June, while U.S. crude inventories likely rose by 500,000 barrels last week, according to a Reuters analyst poll.

Currency Market Commentary

The pound traded steadily on Monday, heading for its strongest monthly performance against the U.S. dollar since late 2023, as April’s broad sell-off in U.S. assets continued. The dollar remained weak on Tuesday, with no clear signals of progress in Sino-U.S. trade talks after Treasury Secretary Scott Bessent stated that China must take the first step in de-escalating tariff tensions—adding to the ongoing uncertainty surrounding negotiations.

Impala Platinum Holdings Limited (IMP) -6.02%

Impala Platinum Holdings Limited (IMP) reported a 5% decline in 6E production to 2.60Moz for the nine months ended 31 March 2025, impacted by lower managed volumes, a decrease in JV output, and a drop in third-party receipts. However, gross refined and saleable 6E production and sales volumes grew by 1%. The company maintained its FY2025 guidance despite operational challenges and smelter maintenance disruptions. Demand for PGMs remains strong, with resilient pricing amid ongoing margin pressures. Implats continues to focus on disciplined capital allocation and ensuring steady free cash flow.

Renergen Limited (REN) -4.13%

Renergen Limited (REN) has projected a significant widening of losses for the year ended 28 February 2025, with losses per share expected to range between ZAR -1.52 and ZAR -1.67, more than double the previous year’s loss of ZAR -0.75. The deterioration reflects ongoing scale-up and investment pressures, with audited results still pending.

HSBC Holdings PLC (HSBA) -0.04%

HSBC reported a 25% year-on-year drop in Q1 pre-tax profit to $9.5 billion, down from $12.7 billion, primarily due to one-off charges linked to its business disposals in Canada and Argentina. Despite the decline, results exceeded the $7.8 billion analyst consensus. The bank announced a $3 billion share buyback, reflecting underlying confidence amid a challenging macro backdrop marked by heightened geopolitical and trade-related uncertainty impacting market sentiment.

Domino's Pizza Inc. (DPZ) +0.63%

Domino’s Pizza reported a surprise 0.5% decline in Q1 U.S. same-store sales, missing expectations of a 0.5% rise, as inflation and economic uncertainty dampened consumer demand for restaurant dining. Despite reiterating its 3% annual U.S. growth target, the company cautioned that ongoing macro headwinds could challenge this outlook. U.S. company-owned store gross margin contracted to 16% from 17.5% due to elevated food costs. Positively, international same-store sales rose 3.7%, comfortably surpassing the 1.93% consensus. EPS came in at $4.33, beating the $4.07 analyst estimate.

Brown & Brown Inc. (BRO) +0.38%

Brown & Brown reported a 13% year-on-year increase in Q1 net profit to $331 million (EPS: $1.15), driven by a 12% rise in commissions and fees to $1.39 billion, as it continued to leverage its role as a client-focused intermediary in the insurance sector. Total revenue climbed 11.6% to $1.40 billion, underscoring resilient demand for risk management services. However, investment and other income declined to $19 million from $21 million a year earlier, partially offsetting top-line momentum.

Do you prefer a full in-depth report you can read offline? Click here to download the full report.