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Domino's (DPZ) Q2 Earnings: Will Solid Comps Trend Continue?

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Domino's Pizza, Inc. (DPZ - Free Report) , which is scheduled to report second-quarter 2018 earnings on Jul 19, will be under investors’ purview. Investors will not just look at the company’s top- and bottom-line performances but closely observe its comparable sales (comps) performance as well.

Notably, the company has reported positive comparable sales over the past few quarters. In first-quarter 2018, Domino's posted positive comparable sales for the 28th consecutive quarter domestically and 97th internationally.

We believe the company will continue with its solid comparable sales trend backed by consistent focus on innovation, execution of growth strategy and digital initiatives. Furthermore, many international franchisees are consistently generating robust returns. Apart from the established markets such as Canada, Japan, Italy, the U.K., Ireland, Switzerland and South Korea, the emerging markets like Brazil, China, Indonesia and Turkey have been posting solid growth. Australia, Russia, New Zealand and Saudi Arabia are gaining momentum as well.

India is also a market with immense growth potential. In fact, Domino’s India operations are one of the fastest growing operations in its global system. Moreover, the company’s entry into Slovakia and Malta is proof of its ever-expanding base.

Moving ahead, Domino's initiatives on the digital front, increased store counts, focus on re-imaging and other sales-boosting strategies are expected to help sustain the momentum. In the meantime, its digital loyalty program — Piece of the Pie Rewards — continues to contribute significantly toward increase in traffic. Additionally, the company’s extended ways to order a pizza has kept it in the forefront of digital ordering and customer convenience.

In the to-be-reported quarter, Domino's overall top and bottom line are expected to improve significantly. The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.76. We observed that the consensus estimate moved up 3 cents in the past seven days, reflecting a year-over-year increase of nearly 33.3%. (Read more: Factors Setting the Tone for Domino's Pizza Q2 Earnings)

Domino's currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Domino's Pizza Inc Price, Consensus and EPS Surprise

Other Stocks to Watch for Earnings

Investors following the restaurant stocks may watch out for earnings of The Cheesecake Factory Incorporated (CAKE - Free Report) , McDonald's Corporation (MCD - Free Report) and Wingstop Inc. (WING - Free Report) , which are scheduled to report quarterly results on Jul 31, 26 and Aug 2, respectively. You can also uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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