Fast-food pizza chain Domino’s (NYSE:DPZ) will be reporting results tomorrow morning. Here’s what to look for.
Domino's missed analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $1.08 billion, up 5.1% year on year. It was a slower quarter for the company, with a slight miss of analysts’ same-store sales and EBITDA estimates.
Is Domino's a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Domino’s revenue to grow 5.2% year on year to $1.48 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $4.91 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Domino’s peers in the traditional fast food segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Dutch Bros delivered year-on-year revenue growth of 34.9%, beating analysts’ expectations by 7.6%, and Wendy's reported revenues up 6.2%, topping estimates by 2.1%. Dutch Bros traded up 29% following the results while Wendy’s stock price was unchanged.
Read our full analysis of Dutch Bros’s results here and Wendy’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, have had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the traditional fast food stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.8% on average over the last month. Domino's is up 7.2% during the same time and is heading into earnings with an average analyst price target of $486.26 (compared to the current share price of $462.36).
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