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Domino's (DPZ) Beats on Q1 Earnings & Sales, Stock Gains
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Shares of Domino's Pizza Inc. (DPZ - Free Report) were up 2.5% in yesterday’s trading session after the company posted robust first-quarter 2017 results, with both earnings and revenues beating the Zacks Consensus Estimate.
Performance in Detail
Adjusted earnings of $1.26 per share beat the Zacks Consensus Estimate of $1.16 by 8.6%. Earnings climbed 41.6% year over year on strong sales as well as a lower share count.
Quarterly revenues jumped 15.8% year over year to $624.2 million and surpassed the Zacks Consensus Estimate of $612 million by 2%. The improvement was backed by higher supply chain revenues, increased domestic franchise and company-owned stores revenues as well as higher international franchise revenues.
Comps
Global retail sales (including total sales of franchise and company-owned units) increased by 13.2% year over year. The rise was primarily due to strong comps from domestic stores. Excluding foreign currency impact, global retail sales surged 15.2%.
During the quarter, the company’s domestic store (including company-owned and franchise stores) comps increased 10.2% compared with 6.4% growth in the year-ago quarter. In the previous quarter, domestic stores comps grew 12.2%.
In fact, Domino’s experienced year-over-year comps growth of 14.1% at domestic company-owned stores higher than 4% comps growth in the year-ago quarter and 13.7% growth in the last quarter. Also, domestic franchise stores comps grew 9.8% versus comps growth of 6.6% a year ago, but weaker than 12.1% growth in the preceding quarter.
Comps at international stores, excluding foreign currency translation, grew 17%. This was higher than the prior quarter and year-ago quarter improvement of 4.3% and 15.4%, respectively.
Margins
The company’s operating margin remained flat at 31.0%, in the quarter.
Meanwhile, the net income margin increased 160 bps to 10.0%. The increase in the company’s net income was primarily driven by an increase in comps growth and store count as well as higher supply chain volumes and lower food costs. However, the increases were partially offset by higher general and administrative expenses from investments in technological initiatives as well as unfavorable foreign exchange translations.
Domino's Pizza Inc Price, Consensus and EPS Surprise
Papa Murphy’s Holdings, Inc. (FRSH - Free Report) is another Zacks Rank #1 company. It has seen current year and next year earnings estimates rise 50% and 500%, respectively, in the past two months.
Darden Restaurants, Inc.’s (DRI - Free Report) earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 3.35%. It currently holds a Zacks Rank #2 (Buy).
Zacks' Hidden Trades
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Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
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Domino's (DPZ) Beats on Q1 Earnings & Sales, Stock Gains
Shares of Domino's Pizza Inc. (DPZ - Free Report) were up 2.5% in yesterday’s trading session after the company posted robust first-quarter 2017 results, with both earnings and revenues beating the Zacks Consensus Estimate.
Performance in Detail
Adjusted earnings of $1.26 per share beat the Zacks Consensus Estimate of $1.16 by 8.6%. Earnings climbed 41.6% year over year on strong sales as well as a lower share count.
Quarterly revenues jumped 15.8% year over year to $624.2 million and surpassed the Zacks Consensus Estimate of $612 million by 2%. The improvement was backed by higher supply chain revenues, increased domestic franchise and company-owned stores revenues as well as higher international franchise revenues.
Comps
Global retail sales (including total sales of franchise and company-owned units) increased by 13.2% year over year. The rise was primarily due to strong comps from domestic stores. Excluding foreign currency impact, global retail sales surged 15.2%.
During the quarter, the company’s domestic store (including company-owned and franchise stores) comps increased 10.2% compared with 6.4% growth in the year-ago quarter. In the previous quarter, domestic stores comps grew 12.2%.
In fact, Domino’s experienced year-over-year comps growth of 14.1% at domestic company-owned stores higher than 4% comps growth in the year-ago quarter and 13.7% growth in the last quarter. Also, domestic franchise stores comps grew 9.8% versus comps growth of 6.6% a year ago, but weaker than 12.1% growth in the preceding quarter.
Comps at international stores, excluding foreign currency translation, grew 17%. This was higher than the prior quarter and year-ago quarter improvement of 4.3% and 15.4%, respectively.
Margins
The company’s operating margin remained flat at 31.0%, in the quarter.
Meanwhile, the net income margin increased 160 bps to 10.0%. The increase in the company’s net income was primarily driven by an increase in comps growth and store count as well as higher supply chain volumes and lower food costs. However, the increases were partially offset by higher general and administrative expenses from investments in technological initiatives as well as unfavorable foreign exchange translations.
Domino's Pizza Inc Price, Consensus and EPS Surprise
Domino's Pizza Inc Price, Consensus and EPS Surprise | Domino's Pizza Inc Quote
Zacks Rank & Stocks to Consider
Domino’s carries a Zacks Rank #3 (Hold). Better-ranked stocks in the restaurants space include:
YUM! China Holdings, Inc.’s (YUMC - Free Report) current quarter and current year earnings estimates rose 4.5% and 5.2%, respectively, over the last 60 days. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Papa Murphy’s Holdings, Inc. (FRSH - Free Report) is another Zacks Rank #1 company. It has seen current year and next year earnings estimates rise 50% and 500%, respectively, in the past two months.
Darden Restaurants, Inc.’s (DRI - Free Report) earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 3.35%. It currently holds a Zacks Rank #2 (Buy).
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>