Categories AlphaGraphs, Analysis, Retail

Key figures to note ahead of Domino’s Pizza Q2 earnings

Before the opening bell on Tuesday, July 16, Domino’s Pizza (NYSE: DPZ) will mark the beginning of another earnings season by announcing its second quarter financial results. Helped by its massive store expansion strategy, the pizza company is expected to report about a 7% increase in revenues to $836.92 million.

Meanwhile, same-store sales in the US could likely be hurt by food delivery apps such as GrubHub (NYSE: GRUB) and Uber Eats. One of the USPs of Domino’s was its fast delivery of food orders to customers. With the arrival of these delivery companies, this is no longer a USP.   

domino's store expansion

The Ann Arbor Charter Township, Michigan-based restaurant chain is hoping to beat this by opening stores in as many locations as possible, which, in turn, would cut down delivery times. At the end of the first quarter of 2019, the company had 1,148 more stores than it did a year ago.

During the first quarter, domestic same-store sales grew 3.9%, vs. 8.3% growth it reported in the prior-year quarter. The management is likely to talk in detail about its contingency plan to lift its same-store sales, in the face of severe competition from food delivery firms.   

READ: Beyond Meat continues to leave analysts flabbergasted

Revenues from supply chain and franchise are expected to see continued strength, with year-over-year growth projected at around 10% for both. Meanwhile, market observers are anticipating a modest decline in domestic company-owned stores.

Wall Street anticipates Q2 earnings of $2.02 per share, compared to $1.84 it reported during the year-over period, helped by its aggressive cost optimization measures.

Domino's Pizza (NYSE: DPZ) reported a 4% rise in earnings for the first quarter of 2019.

DPZ shares have gained 14% in the year-to-date period. According to TipRanks, the stock has a 12-month average price target of $312.58, suggesting a 12.5% upside from the last close.

Pizza Hut-parent Yum Brands (NYSE: YUM) and Papa John’s are both slated to announce financial results early next month (NASDAQ: PZZA).

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

Infographic: How Starbucks (SBUX) performed in Q1 2023

Starbucks Corporation (NASDAQ: SBUX) reported first quarter 2023 earnings results today. Consolidated net revenues increased 8% year-over-year to $8.7 billion, in line with projections.   Global comparable store sales increased

Earnings: Google parent Alphabet (GOOG, GOOGL) reports lower Q4 profit

Alphabet Inc. (NASDAQ: GOOGL, GOOG) on Thursday reported a 1% increase in fourth-quarter 2022 revenues, with strong contributions from the cloud business. The company, which owns the largest internet search

HOG Earnings: Key quarterly highlights from Harley-Davidson’s Q4 2022 financial results

Harley-Davidson, Inc. (NYSE: HOG) reported fourth quarter 2022 earnings results today. Revenue increased 12% year-over-year to $1.14 billion. Net income attributable to Harley-Davidson, Inc. rose 94% YoY to $42 million,


Add Comment
Viewing Highlight