Consumer Discretionary ETF Struggles, Dividend Stocks Remain Attractive
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 25 2026
0mins
Source: Fool
- ETF Performance: The State Street Consumer Discretionary Select Sector SPDR ETF is down 1.2% year-to-date as of 2026, contrasting sharply with the S&P 500's 8.6% gain, indicating a weak performance in the consumer sector.
- Dividend Stock Opportunities: There are 20 consumer discretionary stocks down over 20% year-to-date, yet all have dividend yields above 2%, suggesting potential long-term investment opportunities amidst market downturns.
- Domino's Pizza Situation: Domino's Pizza has seen a 14.4% decline in stock price over the past month and is 36.7% below its 52-week high, with disappointing Q1 results leading to a stock drop; however, the announcement of a $1 billion share repurchase program indicates management's confidence in the company's value.
- Las Vegas Sands Challenges: Las Vegas Sands' stock has dropped 13.8% in the past month and is 29.6% off its 52-week high, despite Macau expecting 42 million visitors; constrained hotel room supply is impacting profitability, and the commitment to dividend growth will take time to restore.
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Analyst Views on DPZ
Wall Street analysts forecast DPZ stock price to rise
15 Analyst Rating
6 Buy
8 Hold
1 Sell
Moderate Buy
Current: 295.110
Low
370.00
Averages
464.83
High
556.00
Current: 295.110
Low
370.00
Averages
464.83
High
556.00
About DPZ
Domino’s Pizza, Inc. is a pizza company with a significant business in both delivery and carryout. The Company operates through three segments: U.S. stores, international franchise, and supply chain. The U.S. stores segment is comprised primarily of its franchise operations, which consists of franchised stores located in the United States. The segment also operates a network of United States Company-owned stores. The international franchise segment primarily includes operations related to the Company’s franchising business in foreign markets. The supply chain segment primarily includes the distribution of food, equipment and supplies to stores from the Company’s supply chain center operations in the United States and Canada. It is primarily a franchisor, with approximately 99% of its global stores owned and operated by its independent franchisees. In its international markets, the Company generally grants geographical rights to the Domino’s Pizza brand to master franchisees.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Leadership Change: Domino's Pizza (DPZ) announced Joe Jordan, the current President and COO, as the new CEO to succeed Russell Weiner, who is retiring, resulting in a 3.4% stock drop on Tuesday, indicating market concerns over the leadership transition.
- Analyst Perspective: Morgan Stanley's Brian Harbour noted that while the succession plan is seen as smooth, the current weak fundamentals suggest that new leadership will not address the company's challenges in the short term, maintaining an Equal-weight rating on DPZ.
- Market Reaction: BTIG analyst Peter Saleh expects Domino's shares to face near-term pressure as investors digest the news, expressing disappointment over Weiner's retirement despite the success achieved during his tenure, which raises concerns about future growth.
- Price Target Adjustment: BTIG has lowered its price target for Domino's from $450 to $425, reflecting ongoing market apprehension regarding the company's strategic direction and growth potential despite maintaining a bullish outlook.
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- Executive Transition: Domino's Pizza CEO Russell Weiner has announced his retirement effective September 30, 2026, with current COO Joe Jordan set to take over on October 1, 2026, which is expected to drive strategic changes within the company.
- Leadership Experience: Joe Jordan brings nearly 15 years of experience at Domino's, having held various leadership roles in marketing, U.S. and international operations, technology, and franchisee support, which will be crucial for maintaining the company's competitive edge in the delivery market.
- Board Restructuring: Following Weiner's retirement, he will transition to Executive Chairman, with current Executive Chairman David Brandon also retiring after the 2027 annual shareholder meeting, indicating a significant shift in the company's governance structure.
- Stock Price Fluctuation: Domino's stock closed at $295.11 on Monday, down 5.6% from the previous day, and fell an additional 1.0% in after-hours trading, reflecting market caution regarding the executive changes.
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- Executive Transition: Domino's Pizza CEO Russell Weiner has announced his intention to retire on September 30, 2026, with current COO Joe Jordan set to take over, which could significantly impact the company's strategic direction.
- Performance Overview: Under Weiner's leadership, the company achieved net store growth of over 3,200 locations, increased global retail sales by nearly $3 billion, and delivered close to a 30% rise in operating income, showcasing strong growth momentum during his tenure.
- Board Restructuring: Weiner will transition to Executive Chairman after the 2027 annual shareholder meeting, while current Chairman David Brandon will also retire in 2027, potentially affecting the company's governance structure and future decision-making.
- Market Performance: Domino's stock has fallen over 28% this year, contrasting with a 9% rise in the S&P 500, reflecting market concerns about the company's future prospects, particularly following weaker-than-expected Q1 same-store sales.
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- Leadership Transition: Domino's Pizza has announced that current COO Joe Jordan will take over as CEO on October 1, 2026, marking a new phase for the company after a multi-year succession planning process, which is expected to drive continued growth.
- Former CEO Contributions: Russell Weiner, during his tenure as CEO, successfully oversaw the net growth of over 3,200 new stores and an increase of nearly $3 billion in global retail sales, establishing a strong foundation for the company's market leadership.
- Board Changes: Current Chairman David Brandon will retire after the 2027 annual shareholder meeting, concluding 28 years of service, during which he transformed the company from a domestic pizza chain into a global technology and delivery leader, driving digital innovations like online ordering.
- Future Strategic Direction: Incoming CEO Joe Jordan has committed to continuing Domino's growth by focusing on strengthening its global leadership position and enhancing brand value through innovative digital platforms and exceptional customer service.
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- Executive Transition: Domino's Pizza has appointed Joe Jordan as the new CEO effective October 1, succeeding Russell Weiner, who has served for over four years; Jordan, with 15 years of experience in various roles, is expected to drive growth in a competitive market.
- Strategic Shift: Weiner faced challenges during his tenure due to weaker consumer spending and increased competition in both U.S. and international markets, and Jordan's appointment may signal a new strategic direction to address these pressures, particularly in light of declining consumer expenditure.
- Market Outlook: In April, Domino's forecasted slower annual growth in both the U.S. and international markets, and Jordan's leadership could influence how the company adjusts its market strategies to adapt to these changes, ensuring continued business growth.
- Impact of Leadership Change: Jordan's appointment not only recognizes his capabilities but also reflects the company's commitment to future development; as the new CEO, he will face the challenge of enhancing brand value and market share in the fiercely competitive fast-food industry.
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- Stock Decline: As of June 19, Domino's Pizza has seen its stock price drop approximately 25% year-to-date, trading at $312 per share, which is close to a 52-week low, indicating investor concerns about its future growth prospects.
- Low Valuation: The stock is currently trading at a price-to-earnings ratio of 17, marking the lowest valuation in over a decade, which may attract long-term investors looking for undervalued opportunities.
- Disappointing Sales Performance: The first-quarter earnings report revealed a 3.5% year-over-year increase in global sales, but a 0.4% decline in international same-store sales led to a downward revision of U.S. same-store growth guidance, reflecting the impact of macroeconomic pressures.
- Digital Transformation: Domino's significant investment in its website and app has notably boosted digital sales, with online orders accounting for 85% of total U.S. sales last year, and partnerships with third-party delivery services have enhanced profit margins, showcasing its adaptability in a competitive market.
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