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Valued at a market cap of almost $15.9 billion, Domino's Pizza, Inc. (DPZ) is a pizza company that primarily offers pizzas under the Domino's brand name through company-owned and franchised stores. The Ann Arbor, Michigan-based company also provides bread products, wings, boneless chicken, pastas, oven-baked sandwiches, dips, soft drink products, and desserts. It is expected to announce its fiscal Q1 earnings for 2025 before the market opens on Monday, Apr. 28.
Prior to this event, analysts project this pizza restaurant chain to report a profit of $4.08 per share, up 14% from $3.58 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the last four quarters, while missing on another occasion. Its earnings of $4.89 per share in the previous quarter marginally fell short of the consensus estimates.
For the full year, analysts expect DPZ to report EPS of $17.53, up 5% from $16.69 in fiscal 2024. Its EPS is expected to further grow 11.1% year over year to $19.47 in fiscal 2026.
Shares of DPZ have declined 3.9% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 5.5% rise, and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 7.4% uptick over the same time frame.
On Feb. 24, shares of DPZ closed down 1.5% after its weaker-than-expected Q4 earnings release. While the company’s revenue rose 2.9% year-over-year to $1.4 billion and earnings grew 9.2% to $4.89 per share, both figures came in below analysts’ expectations. On the upside, its international business delivered a remarkable 31st consecutive year of same-store sales growth amidst a challenging global macroeconomic environment. Moreover, its income from operations grew 6.4% year-over-year reaching $273.7 million.
However, challenges in consumer spending, the transition of the company's equipment and supplies business to a third-party supplier, and a rise in provision for income taxes affected DPZ’s otherwise strong performance.
Wall Street analysts are moderately optimistic about DPZ’s stock, with a "Moderate Buy" rating overall. Among 29 analysts covering the stock, 16 recommend "Strong Buy," two advise “Moderate Buy,” 10 suggest “Hold,” and one indicates a “Strong Sell” rating. The mean price target for DPZ is $489.96, which indicates a 3% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
