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Domino's (DPZ) Stock Down as Q4 Earnings Miss Estimates
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Domino's Pizza, Inc. (DPZ - Free Report) reported fourth-quarter fiscal 2020 results, with earnings and revenues missing the Zacks Consensus Estimate. Earnings missed the consensus estimate for the second straight quarter, while revenues missed the mark after beating the same in trailing five quarters. Following the results, the company’s shares are down by nearly 4% in pre-market trading session.
The company also reported robust U.S. same-store sales. The fiscal fourth quarter also marked the 39th straight quarter of positive U.S. comparable sales and the 108th consecutive quarter of positive international comps.
Earnings & Revenues Discussion
In the quarter under review, adjusted earnings per share (EPS) were $3.46 per share that missed the Zacks Consensus Estimate of $3.79. However, the reported figure increased 10.5% on a year-over-year basis. The bottom line was primarily driven by higher net income.
Dominos Pizza Inc Price, Consensus and EPS Surprise
Quarterly revenues of $1,356.6 million missed the consensus mark of $1,383 million. However, the top line rose 17.9% on a year-over-year basis. Notably, robust same-store sales and increase in store count (during the trailing four quarters) in the United States and international markets drove fiscal fourth-quarter revenues. The company opened 624 stores in the fiscal 2020. In the fiscal fourth quarter, the company opened 388 stores, comprising 116 net new U.S. stores and 272 net new international stores. International franchise revenues also improved.
Comps
Global retail sales (including total sales of franchise and company-owned units) increased 21.7% on a year-over-year basis in the fiscal fourth quarter. The upside can primarily be attributed to growth in sales at domestic stores (up 22.8%) and at international stores (up 20.7%). Excluding foreign currency impact, global retail sales increased 20.9%.
In the fiscal fourth quarter, comps at Domino’s domestic stores (including company-owned and franchise stores) increased 11.2%. Moreover, it was higher than the prior-year quarter’s increase of 3.4%.
At domestic company-owned stores, Domino’s comps rose 8.1% year over year, higher than 3.9% in the year-ago quarter’s reported figure. Moreover, domestic franchise stores comps increased 11.4% year over year compared with 3.3% growth in the prior-year quarter’s levels.
Comps at international stores, excluding foreign currency translation, were up 7.3% year over year. This was higher than improvement of 1.7% in the year-ago quarter.
Margins
Domino’s operating margin expanded 60 basis points (bps) year over year to 39.5% in the reported quarter. Net income margin during the quarter came in at 11.2%, thereby matching prior-year quarter’s levels.
Balance Sheet
As of Jan 3, 2020, cash and cash equivalents totaled $168.8 million, down from $190.6 million as of Dec 29, 2019. Long-term debt at the end of the fiscal fourth quarter was $4,116 million compared with $4,071.1 million as of Dec 29, 2019. Inventory amounted to $66.7 million compared with $53 million in the prior-year quarter.
Cash flows from operating activities totaled $592.8 million at the end of fiscal fourth quarter. In the quarter under review, Domino’s incurred capital expenditures of $88.8 million.
The company declared quarterly cash dividend of 94 cents, to be paid out on Mar 30, 2021 to shareholders on record as of Mar 15.
2020 Highlights
Total revenues in fiscal 2020 came in at $4,117.4 million compared with $3,618.8 million in 2019.
General and administrative expenses in fiscal 2020 came in at $406.6 million compared with $382.3 million in 2019.
In fiscal 2020, adjusted EPS came in at $12.01 compared with $9.57 in the previous year.
Zacks Rank & Peer Releases
Domino's currently carries a Zacks Rank #4 (Sell).
Yum! Brands, Inc. (YUM - Free Report) reported strong fourth-quarter 2020 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both the metrics increased year over year. The company’s adjusted earnings of $1.15 beat the Zacks Consensus Estimate of 99 cents. In the prior-year quarter, the company had reported adjusted earnings of $1.00. Quarterly revenues of $1,743 million surpassed the consensus estimate of $1,731 million. The top line also increased 3% year over year. The upside can be attributed to increase in company sales.
McDonald's Corporation (MCD - Free Report) reported fourth-quarter 2020 results, with earnings and revenues missing the Zacks Consensus Estimate. The company reported adjusted earnings of $1.70 per share, which missed the Zacks Consensus Estimate of $1.75. Moreover, the bottom line declined 14% year over year. Quarterly revenues of $5,313.8 million missed the Zacks Consensus Estimate of $5,320 million. The top line declined 2% year over year. The downtick was caused by the coronavirus pandemic.
Starbucks Corporation (SBUX - Free Report) reported mixed first-quarter fiscal 2021 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The company reported adjusted earnings per share (EPS) of 61 cents, which beat the Zacks Consensus Estimate of 55 cents. In the prior-year quarter, the company had reported adjusted EPS of 79 cents. Meanwhile, quarterly revenues of $6,749.4 million missed the Zacks Consensus Estimate of $6,873 million. Moreover, the top line fell 4.9% from the year-ago quarter’s levels. The downside was caused by dismal global retail and comparable sales as well as decline in store traffic.
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Domino's (DPZ) Stock Down as Q4 Earnings Miss Estimates
Domino's Pizza, Inc. (DPZ - Free Report) reported fourth-quarter fiscal 2020 results, with earnings and revenues missing the Zacks Consensus Estimate. Earnings missed the consensus estimate for the second straight quarter, while revenues missed the mark after beating the same in trailing five quarters. Following the results, the company’s shares are down by nearly 4% in pre-market trading session.
The company also reported robust U.S. same-store sales. The fiscal fourth quarter also marked the 39th straight quarter of positive U.S. comparable sales and the 108th consecutive quarter of positive international comps.
Earnings & Revenues Discussion
In the quarter under review, adjusted earnings per share (EPS) were $3.46 per share that missed the Zacks Consensus Estimate of $3.79. However, the reported figure increased 10.5% on a year-over-year basis. The bottom line was primarily driven by higher net income.
Dominos Pizza Inc Price, Consensus and EPS Surprise
Dominos Pizza Inc price-consensus-eps-surprise-chart | Dominos Pizza Inc Quote
Quarterly revenues of $1,356.6 million missed the consensus mark of $1,383 million. However, the top line rose 17.9% on a year-over-year basis. Notably, robust same-store sales and increase in store count (during the trailing four quarters) in the United States and international markets drove fiscal fourth-quarter revenues. The company opened 624 stores in the fiscal 2020. In the fiscal fourth quarter, the company opened 388 stores, comprising 116 net new U.S. stores and 272 net new international stores. International franchise revenues also improved.
Comps
Global retail sales (including total sales of franchise and company-owned units) increased 21.7% on a year-over-year basis in the fiscal fourth quarter. The upside can primarily be attributed to growth in sales at domestic stores (up 22.8%) and at international stores (up 20.7%). Excluding foreign currency impact, global retail sales increased 20.9%.
In the fiscal fourth quarter, comps at Domino’s domestic stores (including company-owned and franchise stores) increased 11.2%. Moreover, it was higher than the prior-year quarter’s increase of 3.4%.
At domestic company-owned stores, Domino’s comps rose 8.1% year over year, higher than 3.9% in the year-ago quarter’s reported figure. Moreover, domestic franchise stores comps increased 11.4% year over year compared with 3.3% growth in the prior-year quarter’s levels.
Comps at international stores, excluding foreign currency translation, were up 7.3% year over year. This was higher than improvement of 1.7% in the year-ago quarter.
Margins
Domino’s operating margin expanded 60 basis points (bps) year over year to 39.5% in the reported quarter. Net income margin during the quarter came in at 11.2%, thereby matching prior-year quarter’s levels.
Balance Sheet
As of Jan 3, 2020, cash and cash equivalents totaled $168.8 million, down from $190.6 million as of Dec 29, 2019. Long-term debt at the end of the fiscal fourth quarter was $4,116 million compared with $4,071.1 million as of Dec 29, 2019. Inventory amounted to $66.7 million compared with $53 million in the prior-year quarter.
Cash flows from operating activities totaled $592.8 million at the end of fiscal fourth quarter. In the quarter under review, Domino’s incurred capital expenditures of $88.8 million.
The company declared quarterly cash dividend of 94 cents, to be paid out on Mar 30, 2021 to shareholders on record as of Mar 15.
2020 Highlights
Total revenues in fiscal 2020 came in at $4,117.4 million compared with $3,618.8 million in 2019.
General and administrative expenses in fiscal 2020 came in at $406.6 million compared with $382.3 million in 2019.
In fiscal 2020, adjusted EPS came in at $12.01 compared with $9.57 in the previous year.
Zacks Rank & Peer Releases
Domino's currently carries a Zacks Rank #4 (Sell).
Yum! Brands, Inc. (YUM - Free Report) reported strong fourth-quarter 2020 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both the metrics increased year over year. The company’s adjusted earnings of $1.15 beat the Zacks Consensus Estimate of 99 cents. In the prior-year quarter, the company had reported adjusted earnings of $1.00. Quarterly revenues of $1,743 million surpassed the consensus estimate of $1,731 million. The top line also increased 3% year over year. The upside can be attributed to increase in company sales.
McDonald's Corporation (MCD - Free Report) reported fourth-quarter 2020 results, with earnings and revenues missing the Zacks Consensus Estimate. The company reported adjusted earnings of $1.70 per share, which missed the Zacks Consensus Estimate of $1.75. Moreover, the bottom line declined 14% year over year. Quarterly revenues of $5,313.8 million missed the Zacks Consensus Estimate of $5,320 million. The top line declined 2% year over year. The downtick was caused by the coronavirus pandemic.
Starbucks Corporation (SBUX - Free Report) reported mixed first-quarter fiscal 2021 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The company reported adjusted earnings per share (EPS) of 61 cents, which beat the Zacks Consensus Estimate of 55 cents. In the prior-year quarter, the company had reported adjusted EPS of 79 cents. Meanwhile, quarterly revenues of $6,749.4 million missed the Zacks Consensus Estimate of $6,873 million. Moreover, the top line fell 4.9% from the year-ago quarter’s levels. The downside was caused by dismal global retail and comparable sales as well as decline in store traffic.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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