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Domino's Gears Up to Report Q4 Earnings: What's in Store?

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Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report fourth-quarter 2024 results on Feb. 24, before the opening bell. In the last reported quarter, DPZ’s earnings surpassed the Zacks Consensus Estimate by 12.9%. In the trailing four quarters, the company’s earnings surpassed the Zacks Consensus Estimate by 7.7%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

DPZ’s Fourth-Quarter Estimates

The Zacks Consensus Estimate for earnings is pegged at $4.95 per share, which implies a 10.5% increase from the prior-year quarter’s reported figure. In the past 30 days, estimates for earnings have witnessed a downward revision of 1.2%. The consensus mark for revenues is pegged at $1.48 billion, which indicates growth of 5.4% from a year-ago actual.

Factors to Note Ahead of DPZ’s Q4 Results

Domino's fourth-quarter 2024 results are likely to benefit from expansion efforts, same-store sales growth and various digital enhancements. Domino's is likely to have benefited from a solid digital ordering system, Hungry for MORE strategy and diversified menu offerings. Domino's Rewards program has been playing a pivotal role in boosting its U.S. performance and driving customer engagement as well as ensuring repeat purchases.

For the fourth quarter, our model predicts comps at the U.S. company-owned and franchise stores to have grown 4% and 4% year over year, respectively. Also, we expect international comps to have increased 3% year over year.

Our model expects total U.S. store revenues to have grown 7.4% from the year-ago level to $482.7 million. Per our model, supply-chain revenues are likely to have risen 5% from the prior-year actual to $899.7 million.

The company rolled out a new Pinpoint Delivery service in the U.S. market. The concept is based on the idea of providing food deliveries to locations based on PIN and without a standard address. Available in the Domino's app, the initiative supports outdoor deliveries (including places like parks, baseball fields and beaches) and a convenient pick-up option. It allows customers to track their orders (using Domino's Tracker), view an anticipated arrival time, see the GPS location of their driver and receive SMS notifications about their deliveries. These efforts are likely to have aided the company’s performance.

We expect the gross margin in the quarter under review to have been 40% compared with 38.4% in the prior year.

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

What the Zacks Model Unveils for DPZ

Our proven model predicts 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. This is exactly the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Domino's has an Earnings ESP of +0.24% and a Zacks Rank #3 at present.

Other Stocks to Consider

Here are some other stocks you may consider, as our model shows that these, too, have the right combination of elements to beat on earnings this season.

Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +0.14% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

COST is expected to register a 10.2% year-over-year increase in earnings for the to-be-reported quarter. It reported an earnings beat in each of the trailing four quarters, delivering an average surprise of 2%.

Home Depot (HD - Free Report) currently has an Earnings ESP of +4.33% and a Zacks Rank of 3.

HD reported an earnings beat in each of the trailing four quarters, delivering an average surprise of 2.3%. Its earnings for the to-be-reported quarter are expected to grow 9.2% year over year.

Williams-Sonoma, Inc. (WSM - Free Report) currently has an Earnings ESP of +0.47% and a Zacks Rank of 3.

WSM’s earnings for the to-be-reported quarter are expected to grow 5.9% year over year. It reported an earnings beat in each of the trailing four quarters, the average surprise being 17.8%.

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