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Domino's (DPZ) Q2 Earnings to Gain From Robust Domestic Sales
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Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report second-quarter 2020 results on Jul 16, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 34.1%. Further, it has a trailing four-quarter positive earnings surprise of 12.7%, on average.
Q2 Expectations
The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.24, higher than $2.19 reported in the year-ago quarter. Over the past seven days, earnings estimates have remained stable. For quarterly revenues, the consensus mark stands at nearly $898.1 million, indicating an improvement of 10.7% from the prior-year quarter.
Factors to Note
Despite the coronavirus pandemic, the company’s second-quarter results are likely to reflect robust domestic revenues. Domino’s solid digital ordering system and other sales initiatives are likely to have positively impacted the company’s performance in the quarter to be reported. However, international sales in the quarter might reflect the impact of the ongoing crisis.
Moreover, the Zacks Consensus Estimate for domestic revenues from franchise and supply chain are pegged at $113 million and $523 million, indicating an improvement of 17.7% and 11.8%, respectively, from the year-ago reported figure. Moreover, domestic company-owned stores’ revenues are anticipated to witness an increase of 7.6% to $113 million. However, the Zacks Consensus Estimate for international revenues is pegged at $47.9 million, suggesting decline of 14.8% from the prior-year quarter.
During the first-quarter 2020 conference call, the company announced that it moved to 100% contactless delivery model across the United Sates. Meanwhile, Domino’s digital loyalty program -- Piece of the Pie Rewards – has been contributing significantly to traffic gains. The extended ways to order a pizza has thus kept Domino’s at the forefront of digital ordering and customer convenience. These efforts are likely to have driven the company’s performance in the to-be-reported quarter.
Our proven model predicts an earnings beat for Domino’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks from the Zacks Restaurant space that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
BJ's Restaurants, Inc. (BJRI - Free Report) currently has a Zacks Rank #3 and an Earnings ESP of +49.71%.
The Cheesecake Factory Incorporated (CAKE - Free Report) has a Zacks Rank #3 and an Earnings ESP of +50.5%.
Starbucks Corporation (SBUX - Free Report) has a Zacks Rank #3 and an Earnings ESP of +3.04%.
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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Domino's (DPZ) Q2 Earnings to Gain From Robust Domestic Sales
Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report second-quarter 2020 results on Jul 16, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 34.1%. Further, it has a trailing four-quarter positive earnings surprise of 12.7%, on average.
Q2 Expectations
The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.24, higher than $2.19 reported in the year-ago quarter. Over the past seven days, earnings estimates have remained stable. For quarterly revenues, the consensus mark stands at nearly $898.1 million, indicating an improvement of 10.7% from the prior-year quarter.
Factors to Note
Despite the coronavirus pandemic, the company’s second-quarter results are likely to reflect robust domestic revenues. Domino’s solid digital ordering system and other sales initiatives are likely to have positively impacted the company’s performance in the quarter to be reported. However, international sales in the quarter might reflect the impact of the ongoing crisis.
Moreover, the Zacks Consensus Estimate for domestic revenues from franchise and supply chain are pegged at $113 million and $523 million, indicating an improvement of 17.7% and 11.8%, respectively, from the year-ago reported figure. Moreover, domestic company-owned stores’ revenues are anticipated to witness an increase of 7.6% to $113 million. However, the Zacks Consensus Estimate for international revenues is pegged at $47.9 million, suggesting decline of 14.8% from the prior-year quarter.
During the first-quarter 2020 conference call, the company announced that it moved to 100% contactless delivery model across the United Sates. Meanwhile, Domino’s digital loyalty program -- Piece of the Pie Rewards – has been contributing significantly to traffic gains. The extended ways to order a pizza has thus kept Domino’s at the forefront of digital ordering and customer convenience. These efforts are likely to have driven the company’s performance in the to-be-reported quarter.
Dominos Pizza Inc Price and EPS Surprise
Dominos Pizza Inc price-eps-surprise | Dominos Pizza Inc Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Domino’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Domino's has a Zacks Rank #2 and an Earnings ESP of +12.27%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Restaurant space that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
BJ's Restaurants, Inc. (BJRI - Free Report) currently has a Zacks Rank #3 and an Earnings ESP of +49.71%.
The Cheesecake Factory Incorporated (CAKE - Free Report) has a Zacks Rank #3 and an Earnings ESP of +50.5%.
Starbucks Corporation (SBUX - Free Report) has a Zacks Rank #3 and an Earnings ESP of +3.04%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>