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Domino's Pizza, Inc. DPZ reported first-quarter fiscal 2025 results. Its earnings beat the Zacks Consensus Estimate, while revenues missed the same. Nonetheless, the top and bottom lines increased from the prior-year quarter’s reported numbers.
Following the announcement, the company’s shares lost 4% in today’s pre-market trading session.
Moreover, the company reported benefits from the Hungry for MORE strategy during the quarter, registering growth in market share across the U.S. and international segments. DPZ continued to manage controllable factors well despite a tough global environment. The strategy supported an increase in sales, store openings and profits. These factors are important for long-term value creation for franchisees and shareholders.
In the quarter, Domino's reported adjusted earnings per share (EPS) of $4.33, which surpassed the Zacks Consensus Estimate of $4.12. The bottom line also rose 21% from $3.58 reported in the year-ago quarter.
Revenues of $1.11 billion missed the consensus mark of $1.12 billion. However, the top line increased 2.5% on a year-over-year basis. This upside can be attributed to strong contributions from U.S. franchise advertising revenues, higher supply-chain revenues and international franchise royalties and fees. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Domino's Pizza Inc price-consensus-eps-surprise-chart | Domino's Pizza Inc Quote
In first-quarter fiscal 2025, Domino's had 223 gross store openings and 231 gross store closures.
Global retail sales (excluding foreign currency impact) rose 4.7% on a year-over-year basis. This upside was driven by a year-over-year increase in international (8.2%) and U.S. store sales (1.3%).
Comps at Domino’s domestic stores (including company-owned and franchise stores) declined 0.5% year over year.
At domestic company-owned stores, Domino’s comps fell 2.9% against the 8.5% rise reported a year ago.
Domestic franchise store comps declined 0.4% against a 5.5% rise reported in the prior-year quarter.
Comps at international stores, excluding foreign currency translation, rose 3.7% compared with a 0.9% improvement reported in the prior-year quarter. We estimated the metric to increase 1.6% year over year.
In the fiscal first quarter, Domino’s gross margin expanded 90 basis points (bps) year over year to 39.8%. However, U.S. company-owned store gross margin contracted 150 bps year over year to 16%. This downside can be attributed to the increase in the company’s food basket pricing to stores and lower sales leverage.
Net income margin was 13.5%, up 190 bps from the year-ago quarter’s numbers.
As of March 23, 2025, cash and cash equivalents totaled $304.3 million compared with $186.1 million as of Dec. 29, 2024. Long-term debt (less current portion) at the end of the fiscal first quarter totaled $3.83 billion, which was in line with fiscal 2024-end. Inventory amounted to $73.2 million compared with $70.9 million as of Dec. 31, 2024.
Capital expenditure at the end of the fiscal first quarter totaled $14.7 million, down from $20.2 million reported in the prior-year quarter.
During the reported quarter, the company repurchased 115,280 shares for an aggregated cost of $50 million. As of March 23, 2025, DPZ stated the availability of $764.3 million under its repurchase program.
Management declared a cash dividend of $1.74 per share. The dividend will be paid on June 30, 2025, to its shareholders of record as of June 13, 2025.
Domino's currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Fastenal Company’s FAST first-quarter 2025 adjusted earnings came in line with the Zacks Consensus Estimate and on par year over year. On the other hand, net sales surpassed the consensus mark and grew year over year.
The top-line growth was attributable to improved customer contract signings over the past 12 months, which were partially offset by sluggish underlying business activity. The bottom line was adversely impacted by higher fleet and transportation costs, along with increased labor costs.
Chipotle Mexican Grill, Inc. CMG reported mixed first-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
Chipotle's first-quarter results were affected by various headwinds, including unfavorable weather conditions and reduced consumer spending. Nonetheless, Chipotle has made notable strides in enhancing restaurant operations, advancing back-of-house innovations and expanding its brand presence both domestically and internationally.
Dave & Buster's Entertainment, Inc. PLAY reported fourth-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both metrics declined on a year-over-year basis.
Dave & Buster’s reported a weak fourth quarter but expressed confidence in the company’s direction as recent trends show signs of improvement. The current leadership team is undoing several decisions made by prior management in marketing, operations and capital spending, and is returning to a more disciplined, fundamentals-driven strategy.
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This article originally published on Zacks Investment Research (zacks.com).
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