Domino's Pizza: Q4 Earnings Preview and Analyst Insights
Earnings Expectations:
* Adjusted EPS: $4.93 vs. $4.48 prior year
* Revenue: $1.48 billion vs. $1.4 billion prior year
* US Same-Store Sales Growth: 1.72% vs. 2.8% prior year
Analyst Commentary:
* Citi: Shares have rebounded from a potentially weak fourth quarter and start to the first quarter.
* Stifel: Franchisee Domino's Pizza Enterprises' planned closure of unprofitable locations could impact global net unit growth.
* TD Cowen: Domino's leads the industry in value perception and recently gained the endorsement of Warren Buffett's Berkshire Hathaway.
Fiscal 2024 Expectations:
* Adjusted EPS: $16.70 vs. $14.66 prior year
* Revenue: $4.74 billion vs. $4.48 billion prior year
* US Same-Store Sales Growth: 3.63% vs. 1.60% prior year
Growth Drivers:
* Expanding third-party delivery services to DoorDash
* Menu innovation, including stuffed crust pizza
* Enhancements to loyalty program, app, and website
* Value platforms
Key Challenges:
* International unit growth challenges
* Closure of unprofitable franchise locations
Market Performance:
* Year-to-date gain of 12%, outperforming the S&P 500's 4%
* One-year gain of 13%, lagging the S&P's 23% return