The 10-second takeaway
For the quarter ended March 24 (Q1), Domino's Pizza beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.
Margins increased across the board.
Domino's Pizza tallied revenue of $417.6 million. The 11 analysts polled by S&P Capital IQ looked for revenue of $411.4 million on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $384.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.59. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.55 per share. GAAP EPS of $0.59 for Q1 were 69% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.1%, 130 basis points better than the prior-year quarter. Operating margin was 18.1%, 70 basis points better than the prior-year quarter. Net margin was 8.2%, 280 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $400.5 million. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $1.77 billion. The average EPS estimate is $2.32.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 334 members out of 417 rating the stock outperform, and 83 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Domino's Pizza a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Domino's Pizza is outperform, with an average price target of $51.04.
Does Domino's Pizza have what it takes to execute internationally? Take a look at some American restaurant concepts that are generating profits in all over the globe in, "3 American Companies Set to Dominate the World." It's free for a limited time. Click here for instant access to this free report.
- Add Domino's Pizza to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy