Domino’s Pizza Inc (DPZ)
Domino's Pizza, Inc., branded as Domino's, is an American multinational pizza restaurant chain founded in 1960. The corporation is headquartered at the Domino's Farms Office Park in Ann Arbor, Michigan.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 30.93% per annum.
- DPZ price at the close of November 20, 2024 was $438.97 and was lower than the bottom border of the primary price channel by $1.34 (0.30%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 34.39% per annum.
- DPZ price at the close of November 20, 2024 was inside the secondary price channel.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of DPZ price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: September 14, 2022
End date: July 17, 2024
a = 4.9223
b = 0.0007
s = 0.0916
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 30.93%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0916) – 1
= 44.23%
September 14, 2022 calculations
Top border of price channel:
Exp(Y707)
= Exp(a + b × X707 + 2 × s)
= Exp(a + b × 1,028 + 2 × s)
= Exp(4.9223 + 0.0007 × 1,028 + 2 × 0.0916)
= Exp(5.8645)
= $352.30
Bottom border of price channel:
Exp(Y707)
= Exp(a + b × X707 – 2 × s)
= Exp(a + b × 1,028 – 2 × s)
= Exp(4.9223 + 0.0007 × 1,028 – 2 × 0.0916)
= Exp(5.4982)
= $244.26
July 17, 2024 calculations
Top border of price channel:
Exp(Y1,168)
= Exp(a + b × X1,168 + 2 × s)
= Exp(a + b × 1,700 + 2 × s)
= Exp(4.9223 + 0.0007 × 1,700 + 2 × 0.0916)
= Exp(6.3607)
= $578.65
Bottom border of price channel:
Exp(Y1,168)
= Exp(a + b × X1,168 – 2 × s)
= Exp(a + b × 1,700 – 2 × s)
= Exp(4.9223 + 0.0007 × 1,700 – 2 × 0.0916)
= Exp(5.9944)
= $401.19
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 30.93% per annum.
- DPZ price at the close of November 20, 2024 was $438.97 and was lower than the bottom border of the primary price channel by $1.34 (0.30%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: March 26, 2024
End date: November 5, 2024
a = 8.0937
b = -0.0012
s = 0.0548
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0012) – 1
= -34.39%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0548) – 1
= 24.53%
March 26, 2024 calculations
Top border of price channel:
Exp(Y1,091)
= Exp(a + b × X1,091 + 2 × s)
= Exp(a + b × 1,587 + 2 × s)
= Exp(8.0937 + -0.0012 × 1,587 + 2 × 0.0548)
= Exp(6.3708)
= $584.55
Bottom border of price channel:
Exp(Y1,091)
= Exp(a + b × X1,091 – 2 × s)
= Exp(a + b × 1,587 – 2 × s)
= Exp(8.0937 + -0.0012 × 1,587 – 2 × 0.0548)
= Exp(6.1515)
= $469.42
November 5, 2024 calculations
Top border of price channel:
Exp(Y1,246)
= Exp(a + b × X1,246 + 2 × s)
= Exp(a + b × 1,811 + 2 × s)
= Exp(8.0937 + -0.0012 × 1,811 + 2 × 0.0548)
= Exp(6.1122)
= $451.33
Bottom border of price channel:
Exp(Y1,246)
= Exp(a + b × X1,246 – 2 × s)
= Exp(a + b × 1,811 – 2 × s)
= Exp(8.0937 + -0.0012 × 1,811 – 2 × 0.0548)
= Exp(5.8928)
= $362.43
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 34.39% per annum.
- DPZ price at the close of November 20, 2024 was inside the secondary price channel.