Domino's (DPZ) Gears Up for Q1 Earnings: What's in Store?

Domino's Pizza, Inc. DPZ is scheduled to report first-quarter 2024 results on Apr 29, before the opening bell. In the last reported quarter, DPZ’s earnings surpassed the Zacks Consensus Estimate by 2.5%.

Q1 Estimates

The Zacks Consensus Estimate for earnings is pegged at $3.36 per share, suggesting 14.7% growth from the prior-year quarter. Over the past 30 days, estimates for earnings have witnessed a downward revision of 3.2%. The consensus mark for revenues is pegged at $1.08 billion, indicating growth of 5.4% from a year ago.

Factors to Note

Robust same-store sales growth, unit expansion, the introduction of new menu items and enhanced digitalization efforts are anticipated to have collectively bolstered the company's revenue trajectory. Capitalizing on its robust carryout and delivery segments, Domino's has strategically implemented initiatives like Car Side Delivery 2-Minute Guarantee, supported by effective awareness campaigns, further fueling its positive momentum.

For the fiscal first quarter, our model predicts comps at US company-owned and franchise stores to grow 7.3% and 3.4% year over year, respectively. Also, we expect international comps to increase 2.1% compared with 1.2% a year ago.

Our model suggests total U.S. store revenues to grow 2.2% from the year-ago levels to $337.9 million. Per our model, supply-chain revenues will rise 5.8% from the prior-year actuals to $660.6 million.

Moreover, the company is expected to benefit from a favorable environment with easing inflationary pressures, which is likely to contribute to improved margins. Gross margin for the quarter is anticipated to see a healthy expansion compared with the prior year, reflecting Domino's ability to manage costs effectively while delivering value to customers. We expect gross margin in the quarter under review to be 38.3% compared with 37.6% in the prior year.

With a solid foundation of innovative initiatives and a focus on customer satisfaction, DPZ is well-positioned to sustain its growth trajectory and create long-term value for shareholders.

Domino's Pizza Inc Price and EPS Surprise 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 doesn’t conclusively predict 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 -1.47% and carries a Zacks Rank #3.

Stocks to Consider

Wingstop Inc. WING has an Earnings ESP of +4.60% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The stock has risen 41.4% so far this year. WING’s earnings beat estimates in each of the trailing four quarters, the average surprise being 21.3%.

Shake Shack Inc. SHAK has an Earnings ESP of +3.33% and a Zacks Rank #3.

Shares of SHAK have gained 34.3% so far this year. SHAK’s earnings beat estimates in each of the trailing four quarters, the average surprise being 92.6%.

Restaurant Brands International Inc. QSR has an Earnings ESP of +0.33% and a Zacks Rank of 3.

Shares of QSR have declined 5.8% so far this year. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 10.2%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Domino's Pizza Inc (DPZ) : Free Stock Analysis Report

Restaurant Brands International Inc. (QSR) : Free Stock Analysis Report

Shake Shack, Inc. (SHAK) : Free Stock Analysis Report

Wingstop Inc. (WING) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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