Domino’s Pizza Inc. (NASDAQ:DPZ) shares are trading lower in premarket on Monday after the fourth-quarter FY24 earnings result.
The company reported fourth-quarter sales growth of 2.9% year-on-year to $1.44 billion, missing the analyst consensus estimate of $1.48 billion.
The revenue increase was primarily due to higher supply chain and U.S. franchise advertising revenues.
The growth in supply chain revenues was attributable to an increase in the company’s food basket pricing to stores, which increased 4.4% during the fourth quarter of 2024 as compared to the fourth quarter of 2023, as well as higher order volumes.
Global retail sales increased 4.4%, excluding the impact of foreign currency. Same-store sales in the U.S. grew 0.4%, while International same-store sales (excluding foreign currency impact) increased 2.7%.
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The company had a global net store increase of 364 stores. Gross margin for the quarter expanded 80 basis points to 39.2%. Operating margin for the quarter expanded 70 basis points to 19%.
EPS of $4.89 missed the analyst consensus estimate of $4.92.
Operating cash flow for the twelve months totaled $624.9 million, with a free cash flow of $512 million. Domino’s held $381.49 million in cash and equivalents as of December 29, 2024.
On February 19, 2025, the company’s Board of Directors approved a 15% increase to its per share quarterly dividend.
Consequently, the Board of Directors declared a $1.74 per share quarterly dividend on its shares for shareholders of record as of March 14, to be paid on March 28.
As of December 29, it had a total remaining authorized amount for share repurchases of $814.3 million.
“Domino’s 2024 results demonstrated that our Hungry for MORE strategy can drive strong order count growth, even in the face of a challenging global macroeconomic environment,” said CEO Russell Weiner.
Price Action: DPZ shares are trading lower by 3.76% at $445.00 in premarket trading on Monday.
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