Domino's Pizza, Inc. (DPZ Quick QuoteDPZ - Free Report) is scheduled to report third-quarter 2024 results on Oct. 10, before the opening bell. In the last reported quarter, DPZ’s earnings surpassed the Zacks Consensus Estimate by 8.9%.

In the trailing four quarters, the company’s earnings have surpassed the Zacks Consensus Estimate by 11.2%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

DPZ’s Q3 Estimates

The Zacks Consensus Estimate for earnings is pegged at $3.67 per share, which implies a 12.2% decline from the prior-year quarter’s reported figure. In the past 7 days, estimates for earnings have witnessed a downward revision of 0.3%. The consensus mark for revenues is pegged at $1.10 billion, which indicates growth of 7.1% from the year-ago actual.

Factors to Note

Domino's third-quarter 2024 top line is likely to have benefited from expansion efforts, same-store sales growth and various digital enhancements. The successful implementation of its "Hungry for MORE" strategy, which focuses on boosting transaction growth across delivery and carryout segments is likely to have driven the company’s top line. The introduction of new menu items, such as the New York Style Pizza also bodes well.

On the international front, strong sales momentum in key growth markets like China and India is likely to have driven the revenues in the quarter-to-be reported.

For the fiscal third quarter, our model predicts comps at the U.S. company-owned and franchise stores to grow 2.9% and 4.3% year over year, respectively. Also, we expect international comps to increase 2.1% year over year.

Our model suggests total U.S. store revenues to grow 7.8% from the year-ago level to $362.5 million. Per our model, supply-chain revenues will rise 6.7% from the prior-year actual to $659.5 million.

However, Domino’s earnings are expected to have declined due to rising costs, particularly in labor and investments in technology and supply-chain capacity. The company is not expecting to see cost leverage in 2024 as these investments continue. Additionally, higher general and administrative expenses, partly caused by the company's worldwide rally event, are likely to have negatively impacted margins. Furthermore, while supply-chain margins are expected to have improved slightly, the overall impact of higher-operational expenses is likely to have hurt earnings.

We expect the gross margin in the quarter under review to be 38.7% compared with 38.8% in the prior year.

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. This is exactly the case here.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Domino's has an Earnings ESP of +0.26% and a Zacks Rank #3.

Other Stocks to Consider

Here are some other stocks you may consider, as our model shows that these, too, have the right combination of elements to beat on earnings this season.

Wingstop Inc. (WING Quick QuoteWING - Free Report) has an Earnings ESP of +2.99% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The stock has risen 61.7% so far this year. WING’s earnings beat estimates in each of the trailing four quarters, the average surprise being 21.8%.

Brinker International, Inc. (EAT Quick QuoteEAT - Free Report) has an Earnings ESP of +9.20% and a Zacks Rank #3. The company's shares have gained 47.7% so far this year.

EAT’s earnings beat estimates in the trailing three out of four quarters and missed once, the average surprise being 211%.

Yum! Brands, Inc. (YUM Quick QuoteYUM - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank of 3. Shares of YUM have increased 4.5% so far this year.

YUM’s earnings beat estimates in the trailing two out of four quarters and missed twice, the average surprise being 0.8%.