Earnings Alerts

Domino’s Pizza (DPZ) Earnings: 2Q Revenue Matches Estimates with 7.1% Growth, EPS Surges to $4.03

  • Domino’s Pizza‘s Q2 revenue reached $1.10 billion, a 7.1% increase from last year, matching estimates.
  • Domestic store sales grew by 4.8%, just shy of the 4.92% estimate.
  • Domestic franchise comparable sales increased by 4.8%, close to the 4.87% estimate.
  • Domestic co-owned comparable sales rose by 4.5%, but were below the 6.08% estimate.
  • International comparable sales grew by 2.1%, surpassing the 0.89% estimate.
  • Earnings per share (EPS) were $4.03, up from $3.08 the previous year.
  • Revenue increase was driven by higher supply chain revenues, U.S. franchise advertising, and U.S. franchise royalties and fees.
  • The quarter included $26.4 million in pre-tax unrealized gains and losses due to remeasurement of investment in DPC Dash.
  • The Board of Directors declared a dividend of $1.51 per share.
  • The company projects global net store growth of 825 to 925 stores in 2024.
  • Guidance metric of 1,100+ global net stores has been temporarily suspended.
  • Expectations are set to fall 175 to 275 stores below the goal of 925+ net stores internationally, mainly due to challenges in store openings and closures faced by a master franchisee.

Domino’s Pizza on Smartkarma

Analysts on Smartkarma, such as Baptista Research, have been closely monitoring Domino’s Pizza Inc.’s recent performance. In a report titled “Domino’s Pizza Inc.: How Are Their Franchisee and Market Pricing Strategies Evolving? – Major Drivers,” the company’s first quarter 2024 results were highlighted, showing a robust performance driven by strong U.S. sales. With a 5.6% increase in U.S. same-store sales attributed to transaction growth and improvements in loyalty programs and promotions, Domino’s demonstrated bullish growth in carryout and lower-income cohort segments. However, international sales exhibited softer growth at 0.9% despite the strong domestic performance.

Furthermore, in the analysis “Domino’s Pizza: Is Its Improving Supply Chain Profitability Enough To Warrant A Bullish Rating? – Major Drivers,” Baptista Research discussed Domino’s positive Q4 results due to its “Hungriest for MORE” strategy focusing on increased sales, store growth, and profits. Highlighting positive U.S. same-store sales and transaction growth in delivery and carryout, Domino’s showcased a strong business momentum. Additionally, the company’s aggressive expansion strategy was evident in adding over 60 new franchisees in 2023, the highest in 15 years, signaling a growth trajectory for Domino’s Pizza.


A look at Domino’s Pizza Smart Scores

FactorScoreMagnitude
Value0
Dividend2
Growth4
Resilience5
Momentum4
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Domino’s Pizza is looking promising in the long run, according to Smartkarma Smart Scores. The company has particularly strong ratings in Growth and Resilience, with respectable scores in Momentum. These scores indicate that Domino’s Pizza is positioned for expansion and able to weather challenges effectively. Additionally, the company’s moderate Dividend score suggests it provides some returns to investors. While the Value score is lower, the overall outlook appears positive for Domino’s Pizza.

Domino’s Pizza, Inc. has a strategic advantage with its network of Company-owned and franchise stores, both domestically and internationally. The company’s focus on regional dough manufacturing and distribution centers further strengthens its operational capabilities. With high ratings in Growth, Resilience, and Momentum, Domino’s Pizza seems well-equipped to capitalize on opportunities and navigate market fluctuations effectively over the long term.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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