Domino's Earnings Preview: Analysts Predict Solid Growth Despite Challenges

Company Overview:

Domino's Pizza (DPZ) is a leading pizza chain with a robust global presence. Investors are eagerly awaiting the company's fourth-quarter earnings results, anticipating further growth and innovation.

Earnings Expectations:

Wall Street analysts anticipate robust earnings, with:

* Adjusted EPS: $4.93 (vs. $4.48 prior year)
* Revenue: $1.48 billion (vs. $1.40 billion)

Same-store sales growth projections include:

* US: 1.72% (vs. 2.80% prior year)
* International: 1.63% (vs. 0.10% prior year)

Fiscal 2024 Outlook:

Analysts forecast continued growth for the fiscal year, with:

* Adjusted EPS: $16.70 (vs. $14.66 prior year)
* Revenue: $4.74 billion (vs. $4.48 billion)
* US Same-Store Sales Growth: 3.63% (vs. 1.60% prior year)
* International Same-Store Sales Growth: 1.37% (vs. 1.70% prior year)

Growth Drivers:

* Expansion of third-party delivery partnerships, particularly with DoorDash
* Menu innovation, including potential launch of stuffed crust pizza
* Loyalty program and app/website enhancements

Challenges:

* Closure of unprofitable locations by franchisee Domino's Pizza Enterprises (DPE)
* International growth challenges

Market Performance:

DPZ shares have gained over 12% year-to-date, but trail the S&P 500's 5% increase. The one-year gain of 13% lags the S&P's 23% jump.

Investor Focus:

Analysts are closely monitoring the performance of Domino's largest franchisee, DPE, and the impact of store closures on global growth. Innovation and delivery partnerships are also key areas of focus.

Recent Developments:

Berkshire Hathaway, led by Warren Buffett, recently acquired a stake in Domino's, signaling confidence in the company's future. This development has boosted investor sentiment.