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Domino's (DPZ) to Post Q2 Earnings: What's in the Offing?
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Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report second-quarter 2024 results on Jul 18, before the opening bell. In the last reported quarter, DPZ’s earnings surpassed the Zacks Consensus Estimate by 6.2%.
Q2 Estimates
The Zacks Consensus Estimate for earnings is pegged at $3.68 per share, which implies 19.5% growth from the prior-year quarter. In the past 30 days, estimates for earnings have witnessed an upward revision of 0.5%. The consensus mark for revenues is pegged at $1.10 billion, indicating growth of 7.8% from the year-ago level.
Factors to Note
Domino's is expected to see strong growth in sales from its existing stores. Expansion of its locations, new menu offerings and improved digital efforts are expected to have aided the top-line growth. By enhancing carryout and delivery services, Domino's has introduced initiatives such as the Car Side Delivery 2-Minute Guarantee and effective promotional efforts to sustain and build upon its current success.
For the fiscal second quarter, our model predicts comps at the U.S. company-owned and franchise stores to grow 8% and 3.3%, respectively, year over year. Also, we expect international comps to increase 0.9% compared with 3.6% a year ago.
Our model suggests total U.S. store revenues to grow 5.2% from the year-ago levels to $356.2 million. Per our model, supply-chain revenues should rise 5.2% from the prior-year actuals to $647.9 million.
However, inflationary pressures in commodity and labor costs are expected to have hurt the margin. The company anticipates a high inflationary environment for food and labor to persist for some time. We expect the gross margin in the quarter under review to be 38.9% compared with 39.5% in the prior year.
With a solid foundation of innovative initiatives and focus on customer satisfaction, DPZ is well-positioned to sustain the company’s growth trajectory and create long-term value for its shareholders.
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 an Earnings ESP of +4.10% and a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some others stocks that you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The stock has risen 47.3% year to date. WING’s earnings beat estimates in each of the trailing four quarters, the average surprise being 21.4%.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +9.59% and a Zacks Rank #2 at present.
The company's shares have surged 47.7% year to date. EAT’s earnings beat estimates in each of the trailing four quarters, the average surprise being 213.4%.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank of 3 at present.
Shares of CMG have risen 26.1% year to date. The company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 8.3%.
Image: Bigstock
Domino's (DPZ) to Post Q2 Earnings: What's in the Offing?
Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report second-quarter 2024 results on Jul 18, before the opening bell. In the last reported quarter, DPZ’s earnings surpassed the Zacks Consensus Estimate by 6.2%.
Q2 Estimates
The Zacks Consensus Estimate for earnings is pegged at $3.68 per share, which implies 19.5% growth from the prior-year quarter. In the past 30 days, estimates for earnings have witnessed an upward revision of 0.5%. The consensus mark for revenues is pegged at $1.10 billion, indicating growth of 7.8% from the year-ago level.
Factors to Note
Domino's is expected to see strong growth in sales from its existing stores. Expansion of its locations, new menu offerings and improved digital efforts are expected to have aided the top-line growth. By enhancing carryout and delivery services, Domino's has introduced initiatives such as the Car Side Delivery 2-Minute Guarantee and effective promotional efforts to sustain and build upon its current success.
For the fiscal second quarter, our model predicts comps at the U.S. company-owned and franchise stores to grow 8% and 3.3%, respectively, year over year. Also, we expect international comps to increase 0.9% compared with 3.6% a year ago.
Our model suggests total U.S. store revenues to grow 5.2% from the year-ago levels to $356.2 million. Per our model, supply-chain revenues should rise 5.2% from the prior-year actuals to $647.9 million.
However, inflationary pressures in commodity and labor costs are expected to have hurt the margin. The company anticipates a high inflationary environment for food and labor to persist for some time. We expect the gross margin in the quarter under review to be 38.9% compared with 39.5% in the prior year.
With a solid foundation of innovative initiatives and focus on customer satisfaction, DPZ is well-positioned to sustain the company’s growth trajectory and create long-term value for its shareholders.
Domino's Pizza Inc Price and EPS Surprise
Domino's Pizza Inc price-eps-surprise | Domino's 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 an Earnings ESP of +4.10% and a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some others stocks that you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Wingstop Inc. (WING - Free Report) has an Earnings ESP of +2.60% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has risen 47.3% year to date. WING’s earnings beat estimates in each of the trailing four quarters, the average surprise being 21.4%.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +9.59% and a Zacks Rank #2 at present.
The company's shares have surged 47.7% year to date. EAT’s earnings beat estimates in each of the trailing four quarters, the average surprise being 213.4%.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank of 3 at present.
Shares of CMG have risen 26.1% year to date. The company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 8.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.