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Domino's (DPZ) Gears Up for Q3 Earnings: What's in Store?
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Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report third-quarter 2023 results on Oct 12, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 1.3%.
Q3 Estimates
The Zacks Consensus Estimate for earnings is pegged at $3.29 per share, suggesting 17.9% growth from the prior-year quarter. Over the past 60 days, earnings estimates have remained stable. The consensus mark for revenues is pegged at $1.05 billion, indicating a decline of 1.6% from the year-ago reported figure.
Factors to Note
Domino's fiscal third-quarter results are likely to gain from robust same store sales growth, unit expansion, new menu addition and strong digitalization. DPZ continues to benefit from strong carryout and delivery businesses. It has been focusing on Car Side Delivery 2-Minute Guarantee with awareness campaigns. However, the company’s top line is expected to have been hurt by a decline in sales of U.S. stores and supply-chain revenues.
Our model predicts total U.S. store revenues to dip 0.1% to $355.3 million year over year. Moreover, our model estimates supply-chain revenues to fall 3.3% year over year to $624.7 million.
An ease in inflationary pressure is likely to have aided the company’s margin. Our model projects U.S. company-owned stores and supply-chain cost of sales to decrease 23.6% and 4.5% year over year, respectively. We expect gross margin in the quarter under review to be 39.4% compared with 35.7% reported in the prior-year quarter.
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 -1.92%. 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 #3.
Stocks to Consider
Here are some stocks worth considering from the Zacks Retail-Wholesale space as our model shows that these too have the right combination of elements to beat on earnings this season.
MCD’s earnings beat the consensus mark in all of the trailing four quarters, the average beat being 9.5%. Earnings per share for the to-be-reported quarter are expected to increase 11.6% year over year.
Starbucks Corporation (SBUX - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank #3.
SBUX’s earnings beat estimates in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 7.3%, on average.
Chipotle Mexican Grill, Inc. (CMG - Free Report) currently has an Earnings ESP of +0.37% and a Zacks Rank #3.
CMG’s earnings beat the consensus estimate in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.8%, on average. Earnings per share for the to-be-reported quarter are expected to rise 10% year over year.
Image: Bigstock
Domino's (DPZ) Gears Up for Q3 Earnings: What's in Store?
Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report third-quarter 2023 results on Oct 12, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 1.3%.
Q3 Estimates
The Zacks Consensus Estimate for earnings is pegged at $3.29 per share, suggesting 17.9% growth from the prior-year quarter. Over the past 60 days, earnings estimates have remained stable. The consensus mark for revenues is pegged at $1.05 billion, indicating a decline of 1.6% from the year-ago reported figure.
Factors to Note
Domino's fiscal third-quarter results are likely to gain from robust same store sales growth, unit expansion, new menu addition and strong digitalization. DPZ continues to benefit from strong carryout and delivery businesses. It has been focusing on Car Side Delivery 2-Minute Guarantee with awareness campaigns. However, the company’s top line is expected to have been hurt by a decline in sales of U.S. stores and supply-chain revenues.
Our model predicts total U.S. store revenues to dip 0.1% to $355.3 million year over year. Moreover, our model estimates supply-chain revenues to fall 3.3% year over year to $624.7 million.
An ease in inflationary pressure is likely to have aided the company’s margin. Our model projects U.S. company-owned stores and supply-chain cost of sales to decrease 23.6% and 4.5% year over year, respectively. We expect gross margin in the quarter under review to be 39.4% compared with 35.7% reported in the prior-year quarter.
Domino's Pizza Inc Price and EPS Surprise
Domino's Pizza Inc price-eps-surprise | Domino's Pizza Inc Quote
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 -1.92%. 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 #3.
Stocks to Consider
Here are some stocks worth considering from the Zacks Retail-Wholesale space as our model shows that these too have the right combination of elements to beat on earnings this season.
McDonald's Corporation (MCD - Free Report) currently has an Earnings ESP of +1.11% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
MCD’s earnings beat the consensus mark in all of the trailing four quarters, the average beat being 9.5%. Earnings per share for the to-be-reported quarter are expected to increase 11.6% year over year.
Starbucks Corporation (SBUX - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank #3.
SBUX’s earnings beat estimates in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 7.3%, on average.
Chipotle Mexican Grill, Inc. (CMG - Free Report) currently has an Earnings ESP of +0.37% and a Zacks Rank #3.
CMG’s earnings beat the consensus estimate in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.8%, on average. Earnings per share for the to-be-reported quarter are expected to rise 10% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.