Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report first-quarter 2023 results on Apr 27, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 13%.
Q1 Estimates
The Zacks Consensus Estimate for earnings is pegged at $2.65 per share, suggesting growth of 6% from the prior-year quarter. Over the past seven days, earnings estimates have been revised upward by 1.1%. The consensus mark for revenues is pegged at $1.03 billion, suggesting an improvement of 1.8% from the prior-year reported figure.
Factors to Note
Domino's fiscal first-quarter top line is likely to have benefited from expansion efforts, digitalization and robust comp growth. Increase in sales in the U.S. company-owned stores and easing of supply-chain constrains are likely to have aided the top line.
We expect the U.S. company-owned stores and the U.S. franchise advertising revenues to increase 8% and 6% to $112.2 million and $113 million, respectively. The U.S. franchise royalties and fees are expected to increase 4.6% to $127.9 million. However, our model predicts, supply-chain revenues to decline 4.9% year over year to $579.4 million.
The company continues to witness growth in terms of its carryout and delivery businesses. It has been focusing on Car Side Delivery 2-Minute Guarantee with awareness campaigns. Increased revenues from franchise advertising and supply chain might have driven the fiscal fourth-quarter performance.
However, elevated wage pressures and inflation of commodities are likely to have negatively impacted DPZ’s bottom line. Our model estimates total cost of sales to increase 2.1% year over year to $905.6 million. Gross margin in the quarter is likely to be 34.9% compared with 36.5% reported in the prior-year quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict 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 +1.75%. 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 #4 (Sell).
Stocks Poised to Beat Estimates
Here are some stocks worth considering from the Zacks Retail-Wholesale space as our model shows that these have the right combination of elements to beat on earnings this season.
McDonald's Corporation (MCD - Free Report) currently has an Earnings ESP of +1.48% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
MCD’s earnings beat estimates in each of the trailing four quarters, the average being 4.6%. Earnings for the to-be-reported quarter are expected to increase 4.3% year over year.
Starbucks Corporation (SBUX - Free Report) has an Earnings ESP of +2.73% and a Zacks Rank #3.
SBUX’s earnings beat the consensus mark in two of the last four quarters and missed twice. It has a trailing four-quarter earnings surprise of 4%, on average.
The Wendy's Company (WEN - Free Report) currently has an Earnings ESP of +4.48% and a Zacks Rank #3.
WEN’s earnings beat the consensus mark in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.5%, on average. Earnings for the to-be-reported quarter are expected to increase 17.7% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report first-quarter 2023 results on Apr 27, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 13%.
Q1 Estimates
The Zacks Consensus Estimate for earnings is pegged at $2.65 per share, suggesting growth of 6% from the prior-year quarter. Over the past seven days, earnings estimates have been revised upward by 1.1%. The consensus mark for revenues is pegged at $1.03 billion, suggesting an improvement of 1.8% from the prior-year reported figure.
Factors to Note
Domino's fiscal first-quarter top line is likely to have benefited from expansion efforts, digitalization and robust comp growth. Increase in sales in the U.S. company-owned stores and easing of supply-chain constrains are likely to have aided the top line.
We expect the U.S. company-owned stores and the U.S. franchise advertising revenues to increase 8% and 6% to $112.2 million and $113 million, respectively. The U.S. franchise royalties and fees are expected to increase 4.6% to $127.9 million. However, our model predicts, supply-chain revenues to decline 4.9% year over year to $579.4 million.
The company continues to witness growth in terms of its carryout and delivery businesses. It has been focusing on Car Side Delivery 2-Minute Guarantee with awareness campaigns. Increased revenues from franchise advertising and supply chain might have driven the fiscal fourth-quarter performance.
However, elevated wage pressures and inflation of commodities are likely to have negatively impacted DPZ’s bottom line. Our model estimates total cost of sales to increase 2.1% year over year to $905.6 million. Gross margin in the quarter is likely to be 34.9% compared with 36.5% reported in the prior-year quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict 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 +1.75%. 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 #4 (Sell).
Stocks Poised to Beat Estimates
Here are some stocks worth considering from the Zacks Retail-Wholesale space as our model shows that these have the right combination of elements to beat on earnings this season.
McDonald's Corporation (MCD - Free Report) currently has an Earnings ESP of +1.48% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
MCD’s earnings beat estimates in each of the trailing four quarters, the average being 4.6%. Earnings for the to-be-reported quarter are expected to increase 4.3% year over year.
Starbucks Corporation (SBUX - Free Report) has an Earnings ESP of +2.73% and a Zacks Rank #3.
SBUX’s earnings beat the consensus mark in two of the last four quarters and missed twice. It has a trailing four-quarter earnings surprise of 4%, on average.
The Wendy's Company (WEN - Free Report) currently has an Earnings ESP of +4.48% and a Zacks Rank #3.
WEN’s earnings beat the consensus mark in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.5%, on average. Earnings for the to-be-reported quarter are expected to increase 17.7% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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