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.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.DPZ's Q4 Earnings & Revenue DiscussionIn the quarter, Domino's reported adjusted earnings per share (EPS) of $4.8 ...

Domino's Pizza posted solid gains in its earnings report, evidencing growth and resilience amidst a complex market landscape.Restaurant chain stalwart Domino's Pizza (DPZ -1.99%) reported fourth-quarter and full-year 2024 earnings on Monday, Feb. 24, that fell short of analysts' consensus expectations but still managed to highlight a consistent trajectory of growth and profitability. Earnings per share (EPS) came in at $4.89, marking a 9.2% increase from the prior year but just missing the $4.90 estimate. R ...

Domino's Pizza (DPZ) came out with quarterly earnings of $4.89 per share, missing the Zacks Consensus Estimate of $4.93 per share. This compares to earnings of $4.48 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -0.81%. A quarter ago, it was expected that this pizza chain would post earnings of $3.71 per share when it actually produced earnings of $4.19, delivering a surprise of 12.94%.Over the last four quarters, the compan ...

Group 1 - Domino's Pizza reported mixed fourth-quarter results with earnings per share (EPS) of $4.89 and revenue of $1.44 billion, falling short of analysts' expectations of $4.87 EPS and $1.48 billion in revenue [1][2] - Same-store sales in the U.S. rose by only 0.4%, below the consensus estimate of 1.5%, while international same-store sales increased by 2.7%, exceeding the expected 1.7% growth [2] - CEO Russell Weiner highlighted that 2024 marks the 31st consecutive year of international same-store sales growth despite a challenging global macroeconomic environment [2] Group 2 - Following the earnings report, Domino's shares declined by 5%, although they had previously increased by approximately 7% over the last 12 months [3] - The decline in share price occurred despite a boost from regulatory filings indicating that Warren Buffett's Berkshire Hathaway had acquired a small stake in the company [2]

Competition and Market Challenges - The company faces intense competition in the quick service restaurant (QSR) pizza category, primarily from Pizza Hut, Papa John's, and local competitors, which could adversely affect operating results [100]. - Increased food and labor costs, along with economic conditions, may negatively impact profitability and lead to potential store closures [108]. - The company has experienced labor shortages and increased turnover rates, which could lead to higher operational costs and affect service quality [109]. - The company faces risks from international operations, including political, economic, and regulatory changes that could adversely affect profitability [119]. - An increase in tariffs, such as those announced on February 1, 2025, could disrupt supply chains and increase costs for the company and its franchisees [120]. - The company is subject to extensive regulatory risks, including potential litigation and compliance issues that could divert financial and management resources [155]. Financial Performance and Revenue - Total revenues increased by $227.1 million, or 5.1%, in 2024, reaching $4,706.4 million, driven primarily by higher supply chain revenues and global franchise royalties [232]. - U.S. retail sales increased by 5.3% in 2024, totaling $9,500.1 million, compared to $9,026.1 million in 2023 [221]. - International retail sales, excluding foreign currency impact, grew by 6.5% in 2024, reaching $9,624.1 million, up from $9,249.7 million in 2023 [221]. - The company achieved a global net store growth of 775 stores in 2024, with 160 net openings in the U.S. and 615 internationally [224]. - Income from operations increased by 7.3% in 2024, reflecting improved gross margin dollar performance [224]. - The company reported accruals for casualty insurance reserves of $50.7 million as of December 29, 2024, down from $56.3 million in 2023 [214]. Costs and Expenses - Labor and food costs represent approximately 55% to 65% of sales at a typical company-owned store, with cheese alone accounting for about 25% of the food basket [111]. - General and administrative expenses rose by $24.9 million, or 5.7%, primarily due to higher labor costs [247]. - The company anticipates continued increases in payroll expenses due to government-mandated minimum wage increases, which may materially affect financial results [163]. - The company has experienced significant fluctuations in annual and quarterly financial results, which can lead to stock price volatility [170]. Supply Chain and Operational Risks - The company is dependent on a limited number of suppliers for certain ingredients, which poses risks related to price fluctuations and supply disruptions [113]. - The company does not have long-term contracts with certain suppliers, which could lead to significant price increases or delivery failures [116]. - The company operates 22 regional dough manufacturing and supply chain centers in the U.S. and five in Canada, with plans to continue investing in supply chain productivity initiatives [117]. - The company relies on third-party service providers for critical operations, and failures in these systems could have a material adverse effect on business [131]. Cybersecurity and Technology - Cyber incidents pose significant risks, including operational interruptions and potential data breaches, which could harm the company's brand and financial results [129]. - The company has implemented processes and controls to mitigate cybersecurity risks, but these measures may not fully protect against incidents [130]. - The company’s Board of Directors is actively engaged in overseeing cybersecurity risks, with regular updates provided to the Audit Committee [175]. - Domino's maintains a comprehensive cybersecurity program, including annual risk assessments and compliance with PCI DSS standards [180]. Franchise System and Relationships - The company’s success is heavily reliant on maintaining brand goodwill and positive relationships with franchisees and communities [101]. - As of December 29, 2024, the company had 751 independent U.S. franchisees operating 6,722 U.S. stores, with the largest franchisee owning 158 stores [122]. - Franchisees contribute 6.0% of their sales to the Domino's National Advertising Fund (DNAF) for marketing, although a temporary reduction of 0.25% was implemented from March 27, 2023, to March 24, 2024 [124]. - The company is subject to various risks associated with its franchise system, which may impact royalty payments and brand goodwill [141]. Debt and Financial Obligations - As of December 29, 2024, the company's consolidated total indebtedness was approximately $4.98 billion [145]. - The company’s senior notes have scheduled principal payments of $1.18 billion in 2025 and $1.31 billion in 2027 [152]. - The company may incur additional debt under current securitized debt agreements, which could increase financial vulnerability [145]. - The company faces risks related to the inability to refinance or repay securitized debt, which could restrict cash flow and operational capabilities [154]. Growth and Strategic Initiatives - The company plans to expand its U.S. and international operations, focusing on opening new stores, but faces challenges such as suitable franchisee availability and site selection [105]. - The company’s growth strategy includes participation in third-party order aggregator marketplaces, which may not yield the expected profitability [107]. - The company plans to enhance online ordering and digital marketing capabilities while expanding operations in existing and selected new markets [296]. - The company is exploring the incorporation of traditional and generative AI solutions into its operations, which may expose it to additional risks [138]. Shareholder Returns and Dividends - The company has a share repurchase program authorized for up to $1.14 billion, with $814.3 million remaining as of December 29, 2024 [195]. - Domino's declared a quarterly dividend of $1.74 per common share, payable on March 28, 2025 [193]. - Dividends declared in 2024 amounted to $210.7 million ($6.04 per share), an increase from $170.4 million ($4.84 per share) in 2023 and $157.5 million ($4.40 per share) in 2022 [284].

Sales Growth - Global retail sales growth for Q4 2024 was 4.4%, with a fiscal 2024 growth of 5.9%[1] - U.S. same store sales growth was 0.4% for Q4 2024 and 3.2% for fiscal 2024[1] - International same store sales growth (excluding foreign currency impact) was 2.7% for Q4 2024 and 1.6% for fiscal 2024[1] - The Company reported global retail sales of over $19.1 billion in 2024, with 99% of its stores operated by independent franchise owners[24] - Total revenues for the fiscal year ended December 29, 2024, increased to $4,706,416,000, up from $4,479,358,000 in the previous year, representing a growth of 5.1%[31] Financial Performance - Income from operations increased by 6.4% in Q4 2024 and 7.3% for fiscal 2024[1] - Net income for Q4 2024 was $169.4 million, a 7.7% increase from Q4 2023[7] - Net income for the fiscal year ended December 29, 2024, was $584,170,000, compared to $519,118,000 for the fiscal year ended December 31, 2023, reflecting an increase of 12.5%[31] - Operating income for the fiscal year ended December 29, 2024, was $878,999,000, up from $819,519,000 in the previous year, reflecting a growth of 7.2%[31] - Earnings per share (diluted) rose to $16.69 for the fiscal year ended December 29, 2024, from $14.66 in the previous year, marking a growth of 13.9%[31] Cost and Margin - Gross margin improved to 39.3% for the fiscal year ended December 29, 2024, compared to 38.6% in the prior year[31] - Total cost of sales for the fiscal year ended December 29, 2024, was $2,857,914,000, which is 60.7% of total revenues, down from 61.4% in the previous year[31] Shareholder Returns - The Board of Directors approved a 15% increase in the quarterly dividend to $1.74 per share[1] - The company repurchased 258,568 shares for $112.0 million in Q4 2024, totaling 758,242 shares for $327.0 million for the fiscal year[9] Cash Flow and Liquidity - The company generated net cash provided by operating activities of $624,897,000 for the fiscal year ended December 29, 2024, compared to $590,864,000 in the previous year[35] - Cash and cash equivalents at the end of the period increased to $186,126,000 from $114,098,000 year-over-year[33] Debt and Leverage - The leverage ratio decreased from 5.2x in 2023 to 4.9x in 2024, reflecting improved financial stability[21] - The company reported a decrease in long-term debt, less current portion, to $3,825,659,000 from $4,934,062,000 year-over-year[33] - The Company has historically operated with a leverage ratio between four and six times, indicating a consistent approach to managing debt levels[19] Digital Presence - More than 85% of U.S. retail sales in 2024 were generated via digital channels, showcasing the Company's strong digital presence[24] Strategic Initiatives - The Company plans to continue evaluating its growth strategy, including participation in the third-party order aggregation marketplace, to enhance market presence[26] - The Company considers the impact of foreign currency exchange rates on international franchise royalty revenues to be significant for understanding its international performance[17] - The Company has excluded the impact of the Russia market from its global retail sales growth statistics, considering it immaterial for the periods presented[22] Store Growth - Net store growth was 364 for Q4 2024 and 775 for fiscal 2024[1] - Consolidated Adjusted EBITDA for the trailing four quarters of 2024 was $1,011,671, compared to $939,121 in 2023, indicating a growth of approximately 7.7%[21] - Segment Income for the fourth quarter of 2024 was $340,968, up from $327,099 in the same quarter of 2023, representing a year-over-year increase of approximately 4.3%[21]

Core Insights - Domino's Pizza, Inc. reported a global retail sales growth of 4.4% for the fourth quarter and 5.9% for fiscal 2024, indicating strong performance despite macroeconomic challenges [1][4] - The company achieved a U.S. same store sales growth of 0.4% for the fourth quarter and 3.2% for fiscal 2024, while international same store sales growth was 2.7% for the fourth quarter and 1.6% for fiscal 2024 [1][4] - The Board of Directors approved a 15% increase in the quarterly dividend to $1.74 per share, reflecting confidence in the company's financial health [1][8] Financial Performance - Total revenues for the fourth quarter of 2024 were $1,443.9 million, a 2.9% increase from $1,403.0 million in the fourth quarter of 2023 [6][29] - Net income for the fourth quarter increased by 7.7% to $169.4 million compared to $157.3 million in the same quarter of the previous year [6][12] - Diluted earnings per share rose to $4.89, a 9.2% increase from $4.48 in the fourth quarter of 2023 [6][12] Operational Highlights - The company experienced a global net store growth of 364 stores in the fourth quarter and 775 stores for fiscal 2024 [1][4] - U.S. Company-owned store gross margin improved to 15.5% in the fourth quarter, up from 14.7% in the previous year [6][29] - Supply chain gross margin increased to 11.3% in the fourth quarter, compared to 10.9% in the same period last year [6][29] Strategic Initiatives - The CEO emphasized the effectiveness of the "Hungry for MORE" strategy, which has driven strong order count growth and market share in the QSR Pizza segment [2] - The company has successfully navigated challenges in the international market, achieving its 31st consecutive year of same store sales growth [2] - Domino's continues to leverage digital channels, with over 85% of U.S. retail sales generated through these platforms in 2024 [24] Shareholder Returns - The company repurchased 258,568 shares for $112.0 million in the fourth quarter and 758,242 shares for $327.0 million during fiscal 2024 [9] - As of December 29, 2024, Domino's had a remaining authorized amount for share repurchases of $814.3 million [9]

Core Viewpoint - Domino's Pizza, Inc. is expected to report its fourth-quarter 2024 results on February 24, with earnings estimates showing a potential increase compared to the previous year [1][2]. Group 1: Earnings Estimates - The Zacks Consensus Estimate for earnings is $4.95 per share, reflecting a 10.5% increase from the prior-year quarter [2]. - Revenue estimates are pegged at $1.48 billion, indicating a growth of 5.4% from the previous year [2]. - In the past 30 days, earnings estimates have been revised downward by 1.2% [2]. Group 2: Performance Drivers - The fourth-quarter results are likely to benefit from expansion efforts, same-store sales growth, and digital enhancements [3]. - The company's digital ordering system and the Hungry for MORE strategy are expected to contribute positively to performance [3]. - The Domino's Rewards program has been crucial in enhancing U.S. performance and customer engagement [3]. Group 3: Sales and Revenue Expectations - U.S. company-owned and franchise store same-store sales are predicted to grow by 4% year over year, with international comps expected to increase by 3% [4]. - Total U.S. store revenues are anticipated to grow by 7.4% to $482.7 million, while supply-chain revenues are likely to rise by 5% to $899.7 million [4]. Group 4: New Initiatives - The company has introduced a new Pinpoint Delivery service, allowing deliveries to specific locations based on PIN codes, enhancing customer convenience [5]. - This service includes features such as order tracking, anticipated arrival times, and SMS notifications, which are expected to support performance [5]. Group 5: Margin Expectations - The gross margin for the quarter is expected to be 40%, compared to 38.4% in the prior year [6]. Group 6: Earnings Prediction Model - The earnings prediction model indicates a likelihood of an earnings beat for Domino's, supported by a positive Earnings ESP of +0.24% and a Zacks Rank of 3 [7].

Core Viewpoint - Domino's Pizza is expected to report an increase in quarterly earnings and revenue in its upcoming financial results [1] Financial Performance - Analysts predict Domino's will report earnings of $4.91 per share for the fourth quarter, up from $4.48 per share in the same period last year [1] - The company projects quarterly revenue of $1.48 billion, compared to $1.4 billion a year earlier [1] Analyst Ratings - RBC Capital analyst Logan Reich has reiterated an Outperform rating for Domino's with a price target of $500 [2] Dividend Information - Domino's currently offers an annual dividend yield of 1.27%, translating to a quarterly dividend of $1.51 per share, or $6.04 annually [2] - To achieve a monthly income of $500 from dividends, an investor would need to own approximately 993 shares, equating to about $468,458 [3] - For a more conservative monthly income goal of $100, an investor would need 199 shares, or approximately $93,880 [3] Stock Price Movement - Domino's shares fell by 0.8% to close at $471.76 on Thursday [5]

Core Viewpoint - RBC Capital Markets analyst Logan Reich maintains an Outperform rating on Domino's Pizza Inc (DPZ) with a price target of $500, highlighting interest in U.S. demand trends and market share ahead of the fourth-quarter results on February 24 [1]. Group 1: Market Dynamics - The potential partnership with DoorDash, Inc. is under consideration, especially as Uber Technologies, Inc.'s exclusivity agreement is set to expire at the end of Q1 [2]. - DoorDash holds a significant market share in the U.S., approximately three times that of Uber, which could influence investor sentiment regarding demand [2]. - Domino's is expected to continue gaining market share due to its strong value positioning and marketing advantages over independent pizza businesses [3]. Group 2: Financial Estimates - The U.S. same-store sales estimate for Domino's in the fourth quarter has been lowered to 1.0%, down from the consensus estimate of 1.3%, reflecting softer category growth [4]. - As of the latest trading session, DPZ shares are down 1.14% to $469.93 [4].