Domino’s Pizza, Inc. (NYSE:DPZ) is gearing up to unveil its third-quarter 2023 financial results on October 12, just before the stock market opens. In the previous quarter, the company outperformed expectations, surpassing the Zacks Consensus Estimate by 1.3%.
Q3 Projections
Analysts anticipate earnings to come in at $3.29 per share for the third quarter, signifying a substantial 17.9% growth compared to the same period last year. Earnings estimates have remained steady over the past 60 days. Revenue-wise, the consensus estimate stands at $1.05 billion, indicating a slight 1.6% decline from the figures reported in the previous year.
Key Considerations
Domino’s third-quarter results are expected to benefit from several factors, including robust same-store sales growth, expansion of its store network, the introduction of new menu items, and a strong digital presence. The company continues to thrive in its carryout and delivery business, bolstered by initiatives like the Car Side Delivery 2-Minute Guarantee, backed by awareness campaigns. However, a decline in sales at U.S. stores and supply-chain revenues is likely to have had an adverse impact on the company’s top line.
Our projections indicate a marginal 0.1% dip in total U.S. store revenues, amounting to $355.3 million, compared to the previous year. Additionally, supply-chain revenues are expected to decrease by 3.3% year over year, reaching $624.7 million.
The easing of inflationary pressures is expected to have positively influenced the company’s profit margins. Our model predicts a 23.6% decrease in cost of sales for U.S. company-owned stores and a 4.5% decrease for the supply chain, both compared to the previous year. Consequently, we anticipate the gross margin for the reviewed quarter to stand at 39.4%, a notable improvement from the 35.7% reported in the same quarter of the previous year.
Featured Image: Megapixl
