We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Domino's Q1 Earnings Beat, Revenues Miss Estimates, Stock Down
Read MoreHide Full Article
Domino's Pizza, Inc. (DPZ - Free Report) reported first-quarter fiscal 2025 results. Its earnings beat the Zacks Consensus Estimate, while revenues missed the same. Nonetheless, the top and bottom lines increased from the prior-year quarter’s reported numbers.
Following the announcement, the company’s shares lost 4% in today’s pre-market trading session.
Moreover, the company reported benefits from the Hungry for MORE strategy during the quarter, registering growth in market share across the U.S. and international segments. DPZ continued to manage controllable factors well despite a tough global environment. The strategy supported an increase in sales, store openings and profits. These factors are important for long-term value creation for franchisees and shareholders.
DPZ's Q1 Earnings & Revenue Discussion
In the quarter, Domino's reported adjusted earnings per share (EPS) of $4.33, which surpassed the Zacks Consensus Estimate of $4.12. The bottom line also rose 21% from $3.58 reported in the year-ago quarter.
Revenues of $1.11 billion missed the consensus mark of $1.12 billion. However, the top line increased 2.5% on a year-over-year basis. This upside can be attributed to strong contributions from U.S. franchise advertising revenues, higher supply-chain revenues and international franchise royalties and fees. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Domino's Pizza Inc Price, Consensus and EPS Surprise
In first-quarter fiscal 2025, Domino's had 223 gross store openings and 231 gross store closures.
DPZ’s Other Metrics
Global retail sales (excluding foreign currency impact) rose 4.7% on a year-over-year basis. This upside was driven by a year-over-year increase in international (8.2%) and U.S. store sales (1.3%).
Comps at Domino’s domestic stores (including company-owned and franchise stores) declined 0.5% year over year.
At domestic company-owned stores, Domino’s comps fell 2.9% against the 8.5% rise reported a year ago.
Domestic franchise store comps declined 0.4% against a 5.5% rise reported in the prior-year quarter.
Comps at international stores, excluding foreign currency translation, rose 3.7% compared with a 0.9% improvement reported in the prior-year quarter. We estimated the metric to increase 1.6% year over year.
DPZ’s Q1 Margins
In the fiscal first quarter, Domino’s gross margin expanded 90 basis points (bps) year over year to 39.8%. However, U.S. company-owned store gross margin contracted 150 bps year over year to 16%. This downside can be attributed to the increase in the company’s food basket pricing to stores and lower sales leverage.
Net income margin was 13.5%, up 190 bps from the year-ago quarter’s numbers.
Balance Sheet of DPZ
As of March 23, 2025, cash and cash equivalents totaled $304.3 million compared with $186.1 million as of Dec. 29, 2024. Long-term debt (less current portion) at the end of the fiscal first quarter totaled $3.83 billion, which was in line with fiscal 2024-end. Inventory amounted to $73.2 million compared with $70.9 million as of Dec. 31, 2024.
Capital expenditure at the end of the fiscal first quarter totaled $14.7 million, down from $20.2 million reported in the prior-year quarter.
During the reported quarter, the company repurchased 115,280 shares for an aggregated cost of $50 million. As of March 23, 2025, DPZ stated the availability of $764.3 million under its repurchase program.
Management declared a cash dividend of $1.74 per share. The dividend will be paid on June 30, 2025, to its shareholders of record as of June 13, 2025.
Fastenal Company’s (FAST - Free Report) first-quarter 2025 adjusted earnings came in line with the Zacks Consensus Estimate and on par year over year. On the other hand, net sales surpassed the consensus mark and grew year over year.
The top-line growth was attributable to improved customer contract signings over the past 12 months, which were partially offset by sluggish underlying business activity. The bottom line was adversely impacted by higher fleet and transportation costs, along with increased labor costs.
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported mixed first-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
Chipotle's first-quarter results were affected by various headwinds, including unfavorable weather conditions and reduced consumer spending. Nonetheless, Chipotle has made notable strides in enhancing restaurant operations, advancing back-of-house innovations and expanding its brand presence both domestically and internationally.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported fourth-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both metrics declined on a year-over-year basis.
Dave & Buster’s reported a weak fourth quarter but expressed confidence in the company’s direction as recent trends show signs of improvement. The current leadership team is undoing several decisions made by prior management in marketing, operations and capital spending, and is returning to a more disciplined, fundamentals-driven strategy.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Domino's Q1 Earnings Beat, Revenues Miss Estimates, Stock Down
Domino's Pizza, Inc. (DPZ - Free Report) reported first-quarter fiscal 2025 results. Its earnings beat the Zacks Consensus Estimate, while revenues missed the same. Nonetheless, the top and bottom lines increased from the prior-year quarter’s reported numbers.
Following the announcement, the company’s shares lost 4% in today’s pre-market trading session.
Moreover, the company reported benefits from the Hungry for MORE strategy during the quarter, registering growth in market share across the U.S. and international segments. DPZ continued to manage controllable factors well despite a tough global environment. The strategy supported an increase in sales, store openings and profits. These factors are important for long-term value creation for franchisees and shareholders.
DPZ's Q1 Earnings & Revenue Discussion
In the quarter, Domino's reported adjusted earnings per share (EPS) of $4.33, which surpassed the Zacks Consensus Estimate of $4.12. The bottom line also rose 21% from $3.58 reported in the year-ago quarter.
Revenues of $1.11 billion missed the consensus mark of $1.12 billion. However, the top line increased 2.5% on a year-over-year basis. This upside can be attributed to strong contributions from U.S. franchise advertising revenues, higher supply-chain revenues and international franchise royalties and fees. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Domino's Pizza Inc Price, Consensus and EPS Surprise
Domino's Pizza Inc price-consensus-eps-surprise-chart | Domino's Pizza Inc Quote
In first-quarter fiscal 2025, Domino's had 223 gross store openings and 231 gross store closures.
DPZ’s Other Metrics
Global retail sales (excluding foreign currency impact) rose 4.7% on a year-over-year basis. This upside was driven by a year-over-year increase in international (8.2%) and U.S. store sales (1.3%).
Comps at Domino’s domestic stores (including company-owned and franchise stores) declined 0.5% year over year.
At domestic company-owned stores, Domino’s comps fell 2.9% against the 8.5% rise reported a year ago.
Domestic franchise store comps declined 0.4% against a 5.5% rise reported in the prior-year quarter.
Comps at international stores, excluding foreign currency translation, rose 3.7% compared with a 0.9% improvement reported in the prior-year quarter. We estimated the metric to increase 1.6% year over year.
DPZ’s Q1 Margins
In the fiscal first quarter, Domino’s gross margin expanded 90 basis points (bps) year over year to 39.8%. However, U.S. company-owned store gross margin contracted 150 bps year over year to 16%. This downside can be attributed to the increase in the company’s food basket pricing to stores and lower sales leverage.
Net income margin was 13.5%, up 190 bps from the year-ago quarter’s numbers.
Balance Sheet of DPZ
As of March 23, 2025, cash and cash equivalents totaled $304.3 million compared with $186.1 million as of Dec. 29, 2024. Long-term debt (less current portion) at the end of the fiscal first quarter totaled $3.83 billion, which was in line with fiscal 2024-end. Inventory amounted to $73.2 million compared with $70.9 million as of Dec. 31, 2024.
Capital expenditure at the end of the fiscal first quarter totaled $14.7 million, down from $20.2 million reported in the prior-year quarter.
During the reported quarter, the company repurchased 115,280 shares for an aggregated cost of $50 million. As of March 23, 2025, DPZ stated the availability of $764.3 million under its repurchase program.
Management declared a cash dividend of $1.74 per share. The dividend will be paid on June 30, 2025, to its shareholders of record as of June 13, 2025.
DPZ’s Zacks Rank
Domino's currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Recent Retail-Wholesale Releases
Fastenal Company’s (FAST - Free Report) first-quarter 2025 adjusted earnings came in line with the Zacks Consensus Estimate and on par year over year. On the other hand, net sales surpassed the consensus mark and grew year over year.
The top-line growth was attributable to improved customer contract signings over the past 12 months, which were partially offset by sluggish underlying business activity. The bottom line was adversely impacted by higher fleet and transportation costs, along with increased labor costs.
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported mixed first-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
Chipotle's first-quarter results were affected by various headwinds, including unfavorable weather conditions and reduced consumer spending. Nonetheless, Chipotle has made notable strides in enhancing restaurant operations, advancing back-of-house innovations and expanding its brand presence both domestically and internationally.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported fourth-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both metrics declined on a year-over-year basis.
Dave & Buster’s reported a weak fourth quarter but expressed confidence in the company’s direction as recent trends show signs of improvement. The current leadership team is undoing several decisions made by prior management in marketing, operations and capital spending, and is returning to a more disciplined, fundamentals-driven strategy.