Domino’s Beats Q3 Earnings Expectations But Misses on Revenue

• Domino's Pizza, Inc. (NASDAQ: DPZ) reported financial results, with an EPS of $4,89 below estimates and revenue falling short.
• The company's stock experienced a decline due to underperformance in U.S. same-store sales and a negative reaction in the stock market.
• Despite domestic challenges, Domino's international operations showed resilience with a 2.7% increase in international same-store sales.

Domino's Pizza, Inc. (NASDAQ: DPZ), the world's largest pizza company, is renowned for its extensive global presence and innovative delivery services. Despite its strong market position, Domino's recently encountered challenges in its financial performance. The company reported an earnings per share (EPS) of $4,89, below the estimated $4.98. Its revenue of approximately $1.44 trillion fell short of the expected $1.47 trillion.

The mixed financial results have impacted Domino's stock performance. The company's stock experienced a decline following the earnings report, reflecting investor concerns. The underperformance in U.S. same-store sales, which grew by only 0.4% compared to the expected 1.5%, contributed to the revenue miss. This has led to a negative reaction in the stock market, with shares dropping by 5%.

Despite the challenges in domestic sales, Domino's international operations showed resilience. International same-store sales increased by 2.7%, surpassing the expected 1.7% growth. CEO Russell Weiner emphasized the company's 31st consecutive year of international same-store sales growth, even amid a challenging global macroeconomic environment. This international strength highlights Domino's ability to adapt and grow in diverse markets.

Domino's also reported a global net store growth of 364 new locations in the fourth quarter and 775 for the fiscal year. Income from operations rose by 6.4% in the fourth quarter and 7.3% for the fiscal year, excluding foreign currency impacts. The company's Board of Directors approved a 15% increase in the quarterly dividend, raising it to $1.74 per share, underscoring its financial strength.

Financial metrics reveal a complex picture for Domino's. The company has a low price-to-earnings (P/E) ratio of approximately 0.09 and a price-to-sales ratio of about 0.01, indicating a low market valuation relative to earnings and sales. The negative debt-to-equity ratio of approximately -0.58 indicates more liabilities than equity, while a current ratio of about 0.56 suggests potential challenges in covering short-term liabilities.

• Domino's Pizza, Inc. (NASDAQ: DPZ) reported financial results, with an EPS of $4,89 below estimates and revenue falling short.
• The company's stock experienced a decline due to underperformance in U.S. same-store sales and a negative reaction in the stock market.
• Despite domestic challenges, Domino's international operations showed resilience with a 2.7% increase in international same-store sales.

Domino's Pizza, Inc. (NASDAQ: DPZ), the world's largest pizza company, is renowned for its extensive global presence and innovative delivery services. Despite its strong market position, Domino's recently encountered challenges in its financial performance. The company reported an earnings per share (EPS) of $4,89, below the estimated $4.98. Its revenue of approximately $1.44 trillion fell short of the expected $1.47 trillion.

The mixed financial results have impacted Domino's stock performance. The company's stock experienced a decline following the earnings report, reflecting investor concerns. The underperformance in U.S. same-store sales, which grew by only 0.4% compared to the expected 1.5%, contributed to the revenue miss. This has led to a negative reaction in the stock market, with shares dropping by 5%.

Despite the challenges in domestic sales, Domino's international operations showed resilience. International same-store sales increased by 2.7%, surpassing the expected 1.7% growth. CEO Russell Weiner emphasized the company's 31st consecutive year of international same-store sales growth, even amid a challenging global macroeconomic environment. This international strength highlights Domino's ability to adapt and grow in diverse markets.

Domino's also reported a global net store growth of 364 new locations in the fourth quarter and 775 for the fiscal year. Income from operations rose by 6.4% in the fourth quarter and 7.3% for the fiscal year, excluding foreign currency impacts. The company's Board of Directors approved a 15% increase in the quarterly dividend, raising it to $1.74 per share, underscoring its financial strength.

Financial metrics reveal a complex picture for Domino's. The company has a low price-to-earnings (P/E) ratio of approximately 0.09 and a price-to-sales ratio of about 0.01, indicating a low market valuation relative to earnings and sales. The negative debt-to-equity ratio of approximately -0.58 indicates more liabilities than equity, while a current ratio of about 0.56 suggests potential challenges in covering short-term liabilities.

The current stock price of DPZ is $434.90, reflecting an increase of 2.91% or $12.31. This price movement indicates positive investor sentiment and confidence in the company's future prospects. Today, the stock has traded between a low of $421.60 and a high of $435.77, showing some volatility but overall upward momentum.

Over the past year, DPZ has reached a high of $542.75 and a low of $395.08. This range highlights the stock's potential for growth as well as the risks associated with market fluctuations. The company's market capitalization stands at approximately $15.02 billion, reflecting its significant size and influence in the fast-food industry.

With a trading volume of 416,779 shares on the NYSE:DPZ, Domino's stock is actively traded, indicating strong investor interest. This level of activity can lead to increased liquidity, making it easier for investors to buy and sell shares. As Domino's prepares to go public on the NASDAQ, these factors contribute to its attractiveness as an investment opportunity.

The current stock price of DPZ is $434.90, reflecting an increase of 2.91% or $12.31. This price movement indicates positive investor sentiment and confidence in the company's future prospects. Today, the stock has traded between a low of $421.60 and a high of $435.77, showing some volatility but overall upward momentum.

Over the past year, DPZ has reached a high of $542.75 and a low of $395.08. This range highlights the stock's potential for growth as well as the risks associated with market fluctuations. The company's market capitalization stands at approximately $15.02 billion, reflecting its significant size and influence in the fast-food industry.

With a trading volume of 416,779 shares on the NYSE:DPZ, Domino's stock is actively traded, indicating strong investor interest. This level of activity can lead to increased liquidity, making it easier for investors to buy and sell shares. As Domino's prepares to go public on the NASDAQ, these factors contribute to its attractiveness as an investment opportunity.

Domino's Pizza (NYSE:DPZ) reported third-quarter results that surpassed earnings expectations but missed on revenue. The company posted an adjusted EPS of $4.19, topping the Street estimate of $3.63, while revenue reached $1.08 billion, slightly below the anticipated $1.1 billion.

Domino's noted a 5.1% increase in global retail sales year-over-year, excluding currency fluctuations. U.S. same-store sales rose by 3.0%, and international same-store sales saw a 0.8% increase. CEO Russell Weiner highlighted that the company’s "Hungry for MORE" strategy is continuing to drive growth, even amid challenging global market conditions.

The quarter also saw a net addition of 72 stores worldwide, and operating income rose by 5.0%, or 5.7% when adjusted for currency impacts on international franchise royalty revenues. Domino’s reaffirmed its guidance for 2024, expecting about 6% growth in annual global retail sales and 8% growth in income from operations, along with global net store growth between 800 to 850 locations.

Domino's Pizza (NYSE:DPZ) shares fell more than 3% intra-day today after Evercore ISI analysts revised their price target to $480, down from $500, while keeping an Outperform rating on the stock.

Ahead of Domino’s third-quarter earnings announcement on Thursday, the analysts cited findings from proprietary consumer panel data that indicate a need to lower US same-store sales (SSS) estimates. Consequently, their Q3 US SSS estimate has been adjusted from +4% to +2%, compared to the Street estimate of +3.8%.

For the fourth quarter, the analysts expect 2% SSS growth in the US, supported by promotional activities, though consensus projects 3.5%. The updated $480 price target, reflecting 24x estimated 2026 EPS, aligns Domino’s closer to its 10-year valuation range and slightly above peers like Yum! Brands and McDonald's. The analysts highlighted Domino’s upcoming growth catalysts, including DoorDash integration in 2025 and a revamped digital app, as well as confidence in the company's potential for 8% operating income growth and double-digit EPS gains.