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Domino's Pizza (DPZ) Tops Q4 Earnings & Revenues; Stock Up
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Shares of Domino's Pizza Inc. (DPZ - Free Report) were up over 2% in yesterday’s trading session after the company posted robust fourth-quarter 2016 results, with both earnings and revenues beating the Zacks Consensus Estimate.
Performance in Detail
Adjusted earnings of $1.48 per share beat the Zacks Consensus Estimate of $1.43 by 3.5%. Earnings climbed 28.7% year over year on strong sales.
Quarterly revenues increased 10.6% year over year to $819.4 million and surpassed the Zacks Consensus Estimate of $773 million by 6%. The improvement was backed by higher supply chain revenues, increased domestic franchise and company-owned stores revenues as well as higher franchise international revenues.
Comps
Global retail sales (including total sales of franchise and company-owned units) were up 7% year over year. The increase was primarily due to strong comps from domestic stores. Excluding foreign currency impact, global retail sales gained 9.7%.
During the quarter, the company’s domestic stores (including company-owned and franchise stores) comps increased 12.2% compared with 10.7% growth in the year-ago quarter. However, domestic stores comps grew 13% in the previous quarter.
The company experienced year-over-year comps growth of 13.7% at company-owned stores higher than 10% comps growth in the year-ago quarter, but lower than the 13.8% growth in the last quarter. Domestic franchise stores comps grew 12.1%, better than comps growth of 10.7% a year ago, but weaker than 12.9% growth in the preceding quarter.
Comps at international stores, excluding foreign currency translation, grew 4.3%. This was lower than the prior quarter and year-ago quarter improvement of 6.6% and 8.6%, respectively.
Margins
The company’s operating margin contracted 10 basis points to 31.1%, in the quarter. The slightly lower consolidated operating margin was driven primarily by higher food cost, escalating transaction-related expenses and increased depreciation expense from the company’s Pizza Theater reimaging program. Nevertheless, lower insurance expenses benefited the operating margin and partially offset these declines.
2016 Results
Domino's Pizza’s full-year adjusted earnings of $4.30 came above the Zacks Consensus Estimate of $4.25 by 1.2%. Furthermore, it increased 24.6% from the year-ago quarter figure of $3.45 on the back of higher revenues.
Full-year revenues of $2.47 billion topped the Zacks Consensus Estimate of nearly $2.43 billion by nearly 2% and increased 11.6% year over year.
Domino's Pizza Inc Price, Consensus and EPS Surprise
The Zacks Consensus Estimate for Potbelly’s 2017 earnings climbed 2.2% over the past 30 days. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 39.82%.
Dave & Buster's earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 37.81%. Meanwhile, for fiscal 2017, EPS is expected to improve 35.1%.
Darden’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 2.57%. Further, for fiscal 2017, EPS is expected to grow 11.1%.
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Domino's Pizza (DPZ) Tops Q4 Earnings & Revenues; Stock Up
Shares of Domino's Pizza Inc. (DPZ - Free Report) were up over 2% in yesterday’s trading session after the company posted robust fourth-quarter 2016 results, with both earnings and revenues beating the Zacks Consensus Estimate.
Performance in Detail
Adjusted earnings of $1.48 per share beat the Zacks Consensus Estimate of $1.43 by 3.5%. Earnings climbed 28.7% year over year on strong sales.
Quarterly revenues increased 10.6% year over year to $819.4 million and surpassed the Zacks Consensus Estimate of $773 million by 6%. The improvement was backed by higher supply chain revenues, increased domestic franchise and company-owned stores revenues as well as higher franchise international revenues.
Comps
Global retail sales (including total sales of franchise and company-owned units) were up 7% year over year. The increase was primarily due to strong comps from domestic stores. Excluding foreign currency impact, global retail sales gained 9.7%.
During the quarter, the company’s domestic stores (including company-owned and franchise stores) comps increased 12.2% compared with 10.7% growth in the year-ago quarter. However, domestic stores comps grew 13% in the previous quarter.
The company experienced year-over-year comps growth of 13.7% at company-owned stores higher than 10% comps growth in the year-ago quarter, but lower than the 13.8% growth in the last quarter. Domestic franchise stores comps grew 12.1%, better than comps growth of 10.7% a year ago, but weaker than 12.9% growth in the preceding quarter.
Comps at international stores, excluding foreign currency translation, grew 4.3%. This was lower than the prior quarter and year-ago quarter improvement of 6.6% and 8.6%, respectively.
Margins
The company’s operating margin contracted 10 basis points to 31.1%, in the quarter. The slightly lower consolidated operating margin was driven primarily by higher food cost, escalating transaction-related expenses and increased depreciation expense from the company’s Pizza Theater reimaging program. Nevertheless, lower insurance expenses benefited the operating margin and partially offset these declines.
2016 Results
Domino's Pizza’s full-year adjusted earnings of $4.30 came above the Zacks Consensus Estimate of $4.25 by 1.2%. Furthermore, it increased 24.6% from the year-ago quarter figure of $3.45 on the back of higher revenues.
Full-year revenues of $2.47 billion topped the Zacks Consensus Estimate of nearly $2.43 billion by nearly 2% and increased 11.6% year over year.
Domino's Pizza Inc Price, Consensus and EPS Surprise
Domino's Pizza Inc Price, Consensus and EPS Surprise | Domino's Pizza Inc Quote
Zacks Rank & Stocks to Consider
Domino's Pizza has a Zacks Rank #3 (Hold). Better-ranked stocks in this sector include Potbelly Corporation (PBPB - Free Report) , Dave & Buster's Entertainment, Inc. (PLAY - Free Report) and Darden Restaurants, Inc. (DRI - Free Report) . All these three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Potbelly’s 2017 earnings climbed 2.2% over the past 30 days. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 39.82%.
Dave & Buster's earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 37.81%. Meanwhile, for fiscal 2017, EPS is expected to improve 35.1%.
Darden’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 2.57%. Further, for fiscal 2017, EPS is expected to grow 11.1%.
Everything You Need to Know About Snapchat BEFORE It Goes Public
You may be curious about the buzz surrounding Snap Inc.'s IPO on March 2. With the company expected to be valued around $22 billion, it is expected to be the largest IPO since 2014. But should you snap up this tech stock on Day 1?
In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges. You'll also learn about 4 other exciting tech companies with jaw-dropping growth. Each could go public in the coming months.
Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop. Download this IPO Watch List today for free >>