What To Expect From Domino's (DPZ) Q2 Earnings

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What To Expect From Domino's (DPZ) Q2 Earnings

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Fast-food pizza chain Domino’s (NYSE:DPZ) will be reporting results tomorrow before the bell. Here's what to look for.

Domino's met analysts' revenue expectations last quarter, reporting revenues of $1.08 billion, up 5.9% year on year. It was a decent quarter for the company: Domino's beat analysts' revenue expectations. In addition, its EPS narrowly outperformed Wall Street's 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 7.6% year on year to $1.10 billion, a reversal from the 3.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.63 per share.

Domino's Total Revenue
Domino's Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Domino's has missed Wall Street's revenue estimates five times over the last two years.

Looking at Domino's peers in the restaurants segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Darden delivered year-on-year revenue growth of 6.8%, meeting analysts' expectations, and Kura Sushi reported revenues up 28.1%, in line with consensus estimates. Darden's stock price was unchanged after the results, while Kura Sushi was down 15.9%.

Read our full analysis of Darden's results here and Kura Sushi's results here.

Growth stocks have been quite volatile since the start of 2024, and while some of the restaurants stocks have fared somewhat better, they have not been spared, with share prices down 2.4% on average over the last month. Domino's is down 8.2% during the same time and is heading into earnings with an average analyst price target of $547.4 (compared to the current share price of $490).

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