Domino's to Report Q1 Earnings: What's in the Offing for the Stock?

Domino's Pizza, Inc. DPZ is scheduled to report first-quarter 2025 results on April 28, before the opening bell. In the last reported quarter, DPZ’s earnings missed the Zacks Consensus Estimate by 0.8%.

The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average beat being 6.8%.

DPZ’s Q1 Estimates

The Zacks Consensus Estimate for earnings is pegged at $4.12 per share, which implies a 15.1% increase from the prior-year quarter’s reported figure. In the past seven days, estimates for earnings have witnessed an upward revision of 1.2%. The consensus mark for revenues is pegged at $1.12 billion, which indicates growth of 3.3% from the year-ago reported actuals. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Factors to Note Ahead of DPZ’s Q1 Results

Domino's first-quarter 2025 results are likely to benefit from expansion efforts and robust digitalization. Robust revenues from the supply chain, courtesy of higher order volumes and an increase in the company's food basket pricing to stores, are likely to have aided its top line.

Domino's Rewards program has been playing a pivotal role in boosting its U.S. performance and driving customer engagement as well as ensuring repeat purchases. The company has also been benefiting from robust growth in India and China.

For the first quarter, our model predicts comps at the U.S. company-owned and franchise stores to grow 8.5% and 5.5%, respectively, year over year. Also, we expect international comps to increase 1.6% year over year.

Our model expects total U.S. store revenues to grow 2.4% from the year-ago level to $362 million. Per our model, supply-chain revenues are likely to rise 4% from the prior-year level to $685.6 million.

However, inflationary pressures in commodity and labor costs, as well as macroeconomic challenges, are likely to have negatively impacted the company’s performance in the to-be-reported quarter. The industry players expect to witness higher costs for quite some time due to labor shortages. The company has been witnessing labor challenges in a handful of markets.

What the Zacks Model Unveils for DPZ

Our proven model predicts an earnings beat for Domino's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Domino's has an Earnings ESP of +2.58% and a Zacks Rank #3 at present.

Other Stocks to Consider

Here are some other stocks you may consider, as our model shows that these, too, have the right combination of elements to beat on earnings this season.

CAVA Group, Inc. CAVA currently has an Earnings ESP of +0.87% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for first-quarter 2025 EPS is pegged at 14 cents, which implies a 16.7% increase year over year. The consensus estimate for CAVA’s quarterly revenues is pegged at $330.6 million, which indicates growth of 27.6% from the figure reported in the prior-year quarter. CAVA reported an earnings surprise of almost 62.6%, on average, in the trailing four quarters.

McDonald's Corporation MCD has an Earnings ESP of +0.06% and a Zacks Rank of 3 at present. In the to-be-reported quarter, McDonald's earnings are expected to register a 2.2% year-over-year decrease.

McDonald's earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average miss being 0.6%.

Caesars Entertainment, Inc. CZR currently has an Earnings ESP of +2.27% and a Zacks Rank of 3.

In the to-be-reported quarter, Caesars Entertainment’s earnings are expected to increase 70.9%. Caesars Entertainment’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed on three occasions, the average negative surprise being 454.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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