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DPZ — Domino's Pizza News Story

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Domino's Q1 profit misses estimates on investment losses

Overview

U.S. pizza chain's Q1 revenue up 3.5%, slight miss to analyst expectations

Q1 net income declined 6.6%, missing analyst estimates

Company authorized additional $1.0 bln share repurchase program

Outlook

Company did not provide specific guidance for the current quarter or full year in its press release

Result Drivers

SUPPLY CHAIN PRICING AND VOLUME - Revenue growth was primarily driven by higher supply chain revenues, reflecting a 2.6% increase in food basket pricing to stores and higher order volumes

FRANCHISE ROYALTIES AND ADVERTISING - Higher U.S. and international franchise royalties and advertising revenues, driven by net store growth and higher U.S. same store sales, supported results

UNREALIZED INVESTMENT LOSSES - Net income declined mainly due to an unfavorable $30 mln change in unrealized losses on the company's investment in DPC Dash

Company press release: ID:nPn4Xk4BLa

Key Details

MetricBeat/MissActualConsensus Estimate
Q1 RevenueSlight Miss*$1.15 bln$1.16 bln (23 Analysts)
Q1 EPS$4.13
Q1 Net IncomeMiss$139.80 mln$144.17 mln (20 Analysts)
Q1 U.S. Same Store Sales Growth0.90%
*Applies to a deviation of less than 1%; not applicable for per-share numbers. Analyst Coverage The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 14 "hold" and 2 "sell" or "strong sell" The average consensus recommendation for the restaurants & bars peer group is "buy" Wall Street's median 12-month price target for Domino's Pizza Inc is $475.00, about 29.1% above its April 24 closing price of $367.83 The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 21 three months ago For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com. (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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