Domino's (DPZ) Set to Report Q2 Earnings: What's in Store?
Domino's Pizza, Inc. DPZ is scheduled to report second-quarter 2023 results on Jul 24, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 10.2%.
Q2 Estimates
The Zacks Consensus Estimate for earnings is pegged at $3.04 per share, suggesting growth of 7.8% from the prior-year quarter. Over the past seven days, earnings estimates have been revised upward by 0.3%. The consensus mark for revenues is pegged at $1.07 billion, indicating an improvement of 0.3% from the year-ago reported figure.
Factors to Note
Domino's fiscal second-quarter results are likely to gain from robust same store sales growth, unit expansion, new menu addition and strong digitalization. The company’s top line is expected to have been boosted by a rise in sales of U.S. stores revenues.
DPZ continues to benefit from strong carryout and delivery businesses. It has been focusing on Car Side Delivery 2-Minute Guarantee with awareness campaigns.
Our model predicts U.S. company-owned stores and U.S. franchise advertising revenues to increase 4.6% and 5.2% to $117.7 million and $116.8 million, respectively. Further, U.S. franchise royalties and fees are expected to improve 2.2% to $131 million. However, our model estimates supply-chain revenues to decline 2% year over year to $633.9 million.
Ease in inflationary pressure is likely to have aided the company’s margin. Our model projects U.S. company-owned stores and supply-chain cost of sales to decrease 1.5% and 0.3% year over year, respectively. We expect gross margin in the quarter under review to be 36.7% compared with 36.3% reported in the prior-year quarter.
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.
Earnings ESP: Domino's has an Earnings ESP of +0.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Domino's carries a Zacks Rank #3.
Other Stocks to Consider
Here are some stocks worth considering from the Zacks Retail-Wholesale space as our model shows that these too have the right combination of elements to beat on earnings this season.
McDonald's Corporation MCD currently has an Earnings ESP of +0.78% and a Zacks Rank #2.
MCD’s earnings beat the consensus mark in all of the trailing four quarters, with average beat being 6.9%. Earnings for the to-be-reported quarter are expected to increase 7.8% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Starbucks Corporation SBUX has an Earnings ESP of +1.57% and a Zacks Rank #3.
SBUX’s earnings beat estimates in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 8.3%, on average.
Chipotle Mexican Grill, Inc. CMG currently has an Earnings ESP of +0.86% and a Zacks Rank #2.
CMG’s earnings beat the consensus estimate in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.7%, on average. Earnings for the to-be-reported quarter are expected to rise 31.1% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Starbucks Corporation (SBUX) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
Domino's Pizza Inc (DPZ) : Free Stock Analysis Report
