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Domino's Pizza, Inc.

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Domino's Pizza posted robust second-quarter 2016 results, wherein both earnings and revenues beat the respective Zacks Consensus Estimate. Adjusted earnings of $0.98 per beat the Zacks Estimate and year ago results by 5.4% and 21% respectively. Revenues increased 12% year over year and surpassed the Consensus by 3.4%. The improvement was primarily backed by higher supply chain revenues. The company has been posting positive comps over the past four quarters, and its digital ordering system, focus on re-imaging and other sales initiatives are expected to help it sustain the momentum. Further, the pizza category is a fast growing segment in the U.S. quick-service restaurant industry. However, higher labor costs and expenses related to sales initiatives are likely to remain headwinds. Despite the weakening of the U.S. dollar in 2016 compared to the prior year, currency headwinds are expected to keep profits under pressure.


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