Domino's Pizza, Inc. DPZ reported fourth-quarter fiscal 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate. The top and bottom lines increased from the prior-year quarter’s reported numbers. Following the announcement, the company’s shares lost 4.2% in the pre-market trading session.

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DPZ's Q4 Earnings & Revenue Discussion

In the quarter, Domino's reported adjusted earnings per share (EPS) of $4.89, which missed the Zacks Consensus Estimate of $4.93. The bottom line rose 9.2% from $4.48 reported in the year-ago quarter.

Domino's Pizza Inc Price, Consensus and EPS Surprise

Domino's Pizza Inc price-consensus-eps-surprise-chart | Domino's Pizza Inc Quote

Revenues of $1.44 billion missed the consensus mark of $1.48 billion. The top line increased 2.9% on a year-over-year basis. The upside can be attributed to higher revenues from the supply chain, courtesy of higher order volumes and an increase in the company's food basket pricing to stores. Strong contributions from U.S. franchise advertising revenues added to the positives.

In fourth-quarter fiscal 2024, Domino's had 395 gross store openings and 31 gross store closures.

Other Metrics

Global retail sales (excluding foreign currency impact) rose 4.4% on a year-over-year basis. The upside was driven by a year-over-year increase in international (6.4%) and U.S. store sales (2.3%).

Comps at Domino’s domestic stores (including company-owned and franchise stores) rose 0.4% year over year.

At domestic company-owned stores, Domino’s comps fell 0.7% year over year against the 5.9% rise reported a year ago.

Domestic franchise store comps jumped 0.5% year over year compared with a 2.6% rise reported in the prior-year quarter.

Comps at international stores, excluding foreign currency translation, rose 2.7% year over year compared with a 0.1% rise reported in the prior-year quarter. We estimated the metric to increase 3% year over year.

DPZ Q4 Margins

In the fiscal fourth quarter, Domino’s gross margin expanded 80 basis points (bps) year over year to 39.2%. U.S. Company-owned store gross margin expanded 80 bps year over year to 15.5%. The upside can be attributed to the absence of a loyalty liability adjustment (which had been recorded in the fourth quarter of fiscal 2023). Additionally, labor efficiencies resulting from improved store-level productivity contributed to the margin growth.

Net income margin was 11.7%, up 50 bps from the year-ago quarter’s numbers. Our estimate was pegged at 11.6%.

Balance Sheet

As of Dec. 29, 2024, cash and cash equivalents totaled $186.1 million compared with $114.1 million as of Dec. 31, 2023. Long-term debt (less current portion) at the end of the fiscal fourth quarter totaled $3.82 billion compared with $4.93 billion as of Dec. 31, 2023. Inventory amounted to $70.9 million compared with $83 million as of Dec. 31, 2023.

Capital expenditure at the end of the fiscal fourth quarter totaled $112.9 million, up from $105.4 million reported in the prior-year quarter.

During the reported quarter, the company repurchased 258,568 shares for an aggregated cost of $112 million. As of Dec. 29, 2024, DPZ stated the availability of $814.3 million under its repurchase program.

The company declared a 15% dividend hike to $1.74 per share, payable on March 28, 2025, to its shareholders of record as of March 14, 2025.

DPZ Fiscal 2024 Highlights

Total revenues in fiscal 2024 amounted to $4.7 billion compared with $4.48 billion in fiscal 2023.

Net income in fiscal 2024 totaled $584.2 million compared with $519.1 million in fiscal 2023.

In 2024, diluted EPS came in at $16.69 compared with $14.66 reported in the previous year.

DPZ’s Zacks Rank

Domino's currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Recent Retail-Wholesale Releases

Restaurant Brands International, Inc. QSR reported fourth-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.

During the quarter, consolidated comps increased 2.5% year over year and net restaurants grew 3.4% year over year. Global system-wide sales rose 5.6% year over year. QSR unveiled its long-term consolidated performance expectations from 2024 to 2028. It anticipates achieving more than 3% growth in comparable sales and at least 5% net restaurant growth.

McDonald's Corporation MCD reported fourth-quarter 2024 results, wherein earnings were in line with the Zacks Consensus Estimate, but revenues missed the same. Both the top and bottom lines decreased year over year. Its Accelerating-the-Arches strategy remains the right approach for expanding market share.

At company-operated restaurants, sales were $2.31 billion, down 7% year over year. Sales at franchise-operated restaurants amounted to $3.95 billion, which increased 2% year over year. The global comps increased 0.4% compared with 3.4% growth in the prior-year quarter. MCD’s comps increased after witnessing a decline in the preceding two quarters.

YUM! Brands, Inc. YUM reported fourth-quarter 2024 results, with adjusted earnings and total revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.

The company’s top-line performance reflected solid contributions from the KFC, Pizza Hut and Taco Bell divisions. It reported progress in the digital space, with digital sales rising approximately 15% and the digital mix surpassing 50%, moving closer to its long-term goal of 100% digital sales. Worldwide system sales — excluding foreign currency translation — grew 8% year over year, with Taco Bell increasing 14% and KFC rising 6%. The metric rose 3% year over year for Pizza Hut.

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