Fast-food pizza chain Domino’s (NASDAQ:DPZ) will be reporting earnings this Tuesday before market open. Here’s what investors should know.
Domino's beat analysts’ revenue expectations last quarter, reporting revenues of $1.19 billion, up 4.3% year on year. It was a mixed quarter for the company, with same-store sales in line with analysts’ estimates.
Is Domino's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Domino’s revenue to grow 2.5% year on year, slowing from the 6.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Domino's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Domino’s peers in the restaurants segment, only Darden has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 5.1%. The stock was down 6.5% on the results.
Read our full analysis of Darden’s earnings results here.Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the restaurants stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.1% on average over the last month. Domino's is down 4.7% during the same time and is heading into earnings with an average analyst price target of $373.15 (compared to the current share price of $308.58).
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