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Domino's (DPZ) to Report Q1 Earnings: What's in the Offing?

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Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report first-quarter 2022 results on Apr 28, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 1.2%.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter earnings is pegged at $3.08, suggesting growth of 2.7% from the prior-year quarter. Over the past seven days, earnings estimates have been revised downward by 0.3%. The consensus mark for revenues stands at $1.02 billion, suggesting an improvement of 3.3% from the prior-year reported figure.

Factors to Note

Domino's fiscal first-quarter performance is likely to have benefited from solid international expansion, sales building efforts and robust digitalization. The company has been gaining from ticket growth. Growth in tickets and orders might have contributed to comps in the to-be-reported quarter. This along with the return of non-delivery service methods across a number of international markets and the resumption of normal store hours in the reopening of stores (that were temporarily closed in certain international markets due to COVID) may have favored the company’s performance in the quarter to be reported.

Domino's Pizza Inc Price and EPS Surprise

Domino's Pizza Inc Price and EPS Surprise

Domino's Pizza Inc price-eps-surprise | Domino's Pizza Inc Quote

Robust supply chain revenues and U.S. franchise advertising revenues might have aided the company’s fiscal first-quarter performance. The Zacks Consensus Estimate for domestic revenues from franchise advertising and supply chain is pegged at $114 million and $593 million, suggesting improvements of 2.7% and 4.4%, respectively, from the year-ago reported figure. The consensus mark for revenues from U.S. company-owned stores stands at $109 million, suggesting a decline of 3.5% year over year.

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 first-quarter performance. However, elevated wage pressures and commodities inflation may have weighed on the fiscal first-quarter margins.

What the Zacks Model Unveils

Our proven model does not 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 -1.62%. 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:

Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +1.39% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Costco Wholesale have gained 55.1% in the past year. COST’s earnings beat the consensus mark in each of the trailing four quarters, the average surprise being 13.3%.

Shake Shack Inc. (SHAK - Free Report) has an Earnings ESP of +6.85% and a Zacks Rank #3.

Shares of Shake Shack have declined 12.4% so far this year. SHAK’s earnings surpassed the consensus mark in each of the trailing four quarters, the average surprise being 89.2%.

Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) has an Earnings ESP of +11.33% and a Zacks Rank #3.

Shares of Cracker Barrel have declined 27.4% in the past year. CBRL’s earnings beat estimates in two of the trailing four quarters and missed twice. The company has a trailing four-quarter earnings surprise of 350.5%, on average.

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

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