Will Domino’s (DPZ) continue its earnings-beat streak in Q4 2024?

Domino’s Pizza, Inc. (NYSE: DPZ) has remained largely unaffected by economic uncertainties and spending constraints, by offering value through its innovative discount program and attracting price-conscious diners. The company expects to maintain stable sales growth in the next few years, leveraging continued increase in profitable order-count. The pizza giant is expected to publish its fourth-quarter earnings report on February 24, before the opening bell.

Domino’s stock had a positive start to 2025 and has gained nearly 14% since the beginning of the year. Despite the company’s impressive long-term track record and global brand recognition, the current stock price suggests that the valuation might be on the higher side. Nevertheless, given the fast-food chain’s tech-driven innovations and growing market share, investors might find it advantageous to add the stock to their watchlists. Stable margin performance and the attractive dividend program make DPZ a good long-term investment.

Estimates

On average, analysts following Domino’s Pizza forecast earnings of $4.91 per share for the fourth quarter, on revenues of $1.48 billion. In the comparable quarter of 2023, the company earned $4.48 per share and posted revenue of $1.40 billion. It has consistently reported revenues that broadly matched estimates in recent quarters. The Q4 earnings report is scheduled for release on Monday, February 24, at 6:05 am ET.

From Domino’s Pizza’s Q3 2024 earnings call:

“As the year has progressed, competitors have followed our lead, and we’ve seen increased intensity around value within QSR pizza. I believe value will continue to be in demand from customers around the world, and know that you’re hearing the same thing from my peers as macroeconomic and geopolitical issues continue to pressure the industry. In these times, I believe the best measure of a company’s current and future success are the share gains that is achieved.”

The company ended its third quarter with a total of 21,002 stores, after adding 208 new stores and closing 136 units during that period. Net revenues increased 5% annually to $1.08 billion in Q3 and came in line with analysts’ expectations. Domestic comparable-store sales grew 3% annually. Net income for the quarter was $146.9 million or $4.19 per share, vs. $147.7 million or $4.18 per share in the prior year period. The bottom line topped expectations, marking the eighth beat in a row.

Business Trend

In a recent statement, the company said it expects 7% or more annual global retail sales growth and operating profit growth of 8% or more each year from 2026 to 2028. It continues to open new stores while maintaining an efficient capital spending strategy. The key drivers of the brand’s popularity include its prompt delivery service and value-based pricing strategy, which targets diverse customer segments. Despite the promotional offers and a revamped loyalty program, the company faces stiff competition from fast-food chains like McDonald’s, which offers various discount programs and promotions.

Shares of Domino’s closed Friday’s trading session at $476.66, after making small gains during the week. The stock grew about 1% in after-hours trading.