Domino’s Pizza, Inc. Earnings Cheat Sheet: Rising Revenue Helps Margins Expand, Profit Rises

Domino’s Pizza, Inc. (NASDAQ:DPZ) reported net income above Wall Street’s expectations for the second quarter. Domino’s Pizza, Inc. through its subsidiaries is engaged in retail sales of food through Domino’s Pizza stores; sales equipment and supplies to Domino’s Pizza stores and receipt of royalties from domestic and international Domino’s Pizza franchise.

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Domino’s Pizza Earnings Cheat Sheet for the Second Quarter

Results: Net income for Domino’s Pizza, Inc. rose to $25.2 million (40 cents per share) vs. $22.6 million (37 cents per share) in the same quarter a year earlier. This marks a rise of 11.4% from the year earlier quarter.

Revenue: Rose 6.2% to $384.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: DPZ beat the mean analyst estimate of 36 cents per share. It beat the average revenue estimate of $376.8 million.

Quoting Management: J. Patrick Doyle, Domino’s President and Chief Executive Officer, said: “The sales momentum in our business continues, resulting in a strong first half for 2011. Domino’s is in over 70 markets around the world; a diversified global presence that has driven steady, positive results. We like our position in the category; and we have tremendous energy to produce even better returns for our shareholders and franchisees going forward.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 10.6% and in the fourth quarter of the last fiscal year, the figure rose 2.3%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 8 cents in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 2.1% to $389.2 million in the first quarter. The figure rose 3.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 14.8% in the third quarter of the last fiscal year from the year-ago quarter.

Gross margins grew 1.1 percentage points to 28.8%. The growth seemed to be driven by increased revenue, as the figure rose 6.2% from the year earlier quarter while costs rose 4.6%.

Competitors to Watch: Papa John’s Int’l, Inc. (NASDAQ:PZZA), Pizza Inn, Inc. (NASDAQ:PZZI), Yum! Brands, Inc. (NYSE:YUM), Chipotle (NYSE:CMG), McDonald’s Corporation (NYSE:MCD), Good Times Restaurants Inc. (NASDAQ:GTIMD), Carrols Restaurant Group, Inc. (NASDAQ:TAST), Wendy’s Arby’s Group Inc. (NYSE:WEN), Nathan’s Famous, Inc. (NASDAQ:NATH), and Star Buffet, Inc. (NASDAQ:STRZ).

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(Source: Xignite Financials)