Fast-food pizza chain Domino’s (NASDAQ: DPZ) will be announcing earnings results this Monday before the bell. Here’s what to look for.
Domino's beat analysts’ revenue expectations last quarter, reporting revenues of $1.54 billion, up 6.4% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ revenue estimates but a miss of analysts’ EPS 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 4.5% year on year, improving from the 2.5% 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 to 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, some have already reported their Q1 results, giving us a hint as to what we can expect. Kura Sushi delivered year-on-year revenue growth of 23.3%, beating analysts’ expectations by 2.5%, and Darden reported revenues up 5.9%, in line with consensus estimates. Kura Sushi traded down 17.8% following the results while Darden was up 1.2%.
Read our full analysis of Kura Sushi’s results here and Darden’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 14.7% on average over the last month. Domino's is up 5.5% during the same time and is heading into earnings with an average analyst price target of $461.90 (compared to the current share price of $367.13).
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