Fast-food pizza chain Domino’s (NYSE: DPZ) will be reporting earnings this Monday before market hours. Here’s what to expect.
Domino's missed analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $1.11 billion, up 2.5% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ same-store sales estimates but a miss of analysts’ EBITDA estimates.
Is Domino's a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Domino’s revenue to grow 4.3% year on year to $1.15 billion, slowing from the 7.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.96 per share.
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.
Looking at Domino’s peers in the restaurants segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Kura Sushi delivered year-on-year revenue growth of 17.3%, beating analysts’ expectations by 2.5%, and Darden reported revenues up 10.6%, in line with consensus estimates. Kura Sushi traded down 11.8% following the results while Darden’s stock price was unchanged.
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 2.5% on average over the last month. Domino's is up 4.2% during the same time and is heading into earnings with an average analyst price target of $505.84 (compared to the current share price of $466).
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