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.
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.”
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).
(Source: Xignite Financials)