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Domino's (DPZ) to Post Q4 Earnings: What's in the Offing?

Domino's Pizza, Inc. DPZ is scheduled to report fourth-quarter 2023 results on Feb 26, before the opening bell. In the last reported quarter, DPZ’s earnings surpassed the Zacks Consensus Estimate by 27.1%.

Q4 Estimates

The Zacks Consensus Estimate for earnings is pegged at $4.35 per share, suggesting a 1.8% decline from the prior-year quarter. Over the past 30 days, estimates for earnings have witnessed a downward revision of 2.3%. The consensus mark for revenues is pegged at $1.42 billion, indicating growth of 1.7% from a year ago.

Factors to Note

Domino's fourth-quarter top line is anticipated to have seen a boost from robust same-store sales growth, expansion of units, introduction of new menu items and enhanced digitalization efforts. The company remains poised to capitalize on its strong carryout and delivery segments. Notably, initiatives such as Car Side Delivery 2-Minute Guarantee, coupled with awareness campaigns, are contributing positively. Despite these factors, the company is expected to have faced challenges in its U.S. store sales, impacting its overall revenue trajectory.

For the fiscal fourth quarter, our model predicts comps at US company-owned and franchise stores to be 2.9% and 1% compared with the prior-year figures of 3.4% and 0.8%, respectively. Also, we expect international comps to be 3.3% compared with 2.6% a year ago.

Our model suggests total U.S. store revenues to dip 1.6% from the year-ago levels to $440.5 million. On the flip side, our model estimates supply-chain revenues to increase 1.8% from the prior-year actuals to $868.2 million.     

An ease in inflationary pressure is likely to have aided DPZ’s margin. Our model projects U.S. company-owned stores cost of sales to decrease 3.4% from the year-earlier levels. We expect gross margin in the quarter under review to be 34.7% compared with 36.8% in the prior year.

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 +1.37%. 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 other 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.

Dave & Buster's Entertainment, Inc. PLAY has an Earnings ESP of +3.51% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

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PLAY’s earnings for the quarter under review are expected to increase 42.5%. It reported better-than-expected earnings in three of the trailing four quarters and in line on the remaining one occasion, the average surprise being 34.5%.

Darden Restaurants, Inc. DRI has an Earnings ESP of +1.11% and a Zacks Rank of 3.

DRI is expected to register 12.8% growth in earnings for the quarter to be reported. It recorded better-than-expected earnings in each of the trailing four quarters, the average surprise being 4.2%.

Jack in the Box Inc. JACK has an Earnings ESP of +1.30% and a Zacks Rank of 3.

JACK’s earnings for the to-be-reported quarter are expected to decline 3%. It reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 10.1%.

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

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Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report

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

Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report

Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report

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