Domino's Pizza (DPZ 2.10%) is slated to report its fiscal second-quarter 2020 results before the market close on Thursday, July 16.
The pizza retailing giant's second quarter began on March 23, which dovetails closely with when restaurants in most U.S. states were ordered to stop their indoor dining operations to help slow the spread of COVID-19. With indoor dining options largely shuttered during much of the quarter, Domino's food delivery and pickup services likely benefited nicely in the U.S.
The bad news, however, is that a good number of the company's international stores were temporarily closed entirely during at least part of the quarter. So investors can probably expect international results to be a drag on Domino's overall results.
Image source: Getty Images.
In 2020, shares of the consumer discretionary company have returned 37.3% through July 14. The S&P 500 is flat over this period.
Here's what to watch when Domino's reports.
Key numbers
Here are Wall Street's estimates for the quarter and Domino's year-ago results to use as benchmarks.
| Metric | Fiscal Q2 2019 Result | Wall Street's Fiscal Q2 2020 Consensus Estimate | Wall Street's Projected Change YOY |
|---|---|---|---|
|
Revenue |
$836.9 million |
$909.2 million |
8.6% |
|
Earnings per share (EPS) |
$2.21 |
$2.19 | 0.9% |
Data sources: Domino's Pizza and Yahoo! Finance. YOY = year over year.
For context, in its fiscal first quarter, Domino's total sales rose 4.4% year over year (or 5.9% in constant currency) to $873.1 million. Growth was driven largely by the 69-store net increase in global retail stores to 17,089. Growth in same-store sales in both the U.S. (1.6%) and internationally (1.5% excluding foreign currency) also contributed.
Net income landed at $121.6 million, which translated to earnings per share of $3.07, up 40% over the year-ago period. Wall Street analysts were looking for EPS of $2.32, so the company easily beat this expectation.
What we know about Domino's performance early in Q2
Due to the uncertainty surrounding the pandemic, when Domino's released its first-quarter results on April 23, management updated investors on the company's performance early in the second quarter.
| Metric |
U.S. Business' First 4 Weeks of Q2 |
International's First 3 Weeks of Q2 |
|---|---|---|
|
Revenue growth YOY |
10.7% |
(18.9%) (13.2% in constant currency) |
| Same-store sales growth YOY | 7.1% | (3.2%) |
Data sources: Domino's Pizza. YOY = year over year. First four weeks of Q2: March 23 to April 19. First three weeks of Q2: March 23 to April 12.
The company said that as of April 21, "nearly all" of its U.S. stores remained open for delivery and carryout, though dining rooms were largely closed.
However, it estimated that approximately 1,750 international stores were temporarily closed, as of the same date. At the end of Q1, there were a total of 10,933 international stores, so the closed stores account for roughly 16% of that total.
