Domino’s Pizza Inc. (NYSE: DPZ) is slated to report third quarter 2019 earnings results on Tuesday, October 8, before the market opens. Analysts expect the company to report earnings of $2.07 per share on revenue of $825 million. This compares to earnings of $1.95 per share on revenue of around $786 million reported in the prior-year period.
The strength in retail sales is expected to continue in the third quarter. The company has seen same-store sales grow domestically and internationally last quarter and this trend is likely to repeat in the to-be-reported period as well. This momentum is expected to help drive higher supply chain and global franchise revenues.
The pizza chain is also expected to benefit from its strategy of expanding its store base to improve its delivery capabilities. Last quarter, the company grew its store count by 200 stores. On the flip side, the adverse impacts from foreign currency exchange rates might dampen results in the third quarter.
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In the second quarter of 2019, Domino’s beat earnings estimates but revenue fell short of forecasts. Revenues rose by 4% to nearly $812 million while EPS grew 23% to $2.19. Results were helped by higher royalty revenues and an increase in supply chain volumes.
Shares of Domino’s have gained 8% in the past one month. The majority of analysts have rated the stock as Buy and the average price target is $285.05.