AutoZone Earnings: Slow Pricing Gains Continue to Pressure Top-Line Growth Trajectory

We don’t plan to significantly alter our $2,550 fair value estimate on wide-moat AutoZone after digesting its fourth-quarter results that slightly underperformed our expectations. Not to our surprise, the pace of top-line growth continued to normalize following prodigious gains in the previous four years as domestic same-store sales expanded 0.2% in the quarter (versus our estimate for a 0.5% gain) and 0.4% for the full year, down from average growth of about 8% from fiscal 2020-23.