Domino’s to report fourth quarter results as investors look for new avenues of growth

Domino’s (DPZ) investors are hungry for more.

For the company’s fourth quarter results, Wall Street expects Domino’s to report revenue of $1.48 billion, with same-store sales up 1.72% year over year. Adjusted earnings are expected to come in at $4.93 per share, up from $4.48 the prior year.

After battling bad weather conditions in the fourth quarter, Citi analyst Jon Tower wrote in a client note that «shares appear to have already moved on from what is likely a soft fourth quarter and start to the first quarter.»

Ahead of the company’s report on Monday before the market open, shares are up more than 12% year to date, compared to the S&P 500’s (^GSPC) 4% gain. However, Domino’s one-year gain of 13% lags the S&P’s 23% return.

In its third quarter results, the company expected to end 2024 with annual global retail sales growth of approximately 6%.

Challenges around its international unit growth are expected to be a «key focus for longer-term investors,» Tower said. Many analysts are focused on its largest franchisee, Domino’s Pizza Enterprises, which plans to close 205 unprofitable locations. The majority of those restaurants will be in Japan.

Stifel analyst Chris O’Cull anticipates the closures will result in a roughly 100 basis point headwind to global net unit growth in 2025.

Here’s what Wall Street expects from Domino’s in the fourth quarter, compared to the year prior:

Adjusted earnings per share: $4.93, versus $4.48

Revenue: $1.48 billion, versus $1.4 billion

US same-store sales growth: 1.72%, versus 2.8%

Company-owned: 1.79%, versus 5.9%

Franchise: 1.74%, versus 2.6%

International same-store sales growth: 1.63%, versus 0.1%

Here’s what Wall Street expects from Domino’s in its fiscal 2024 results, compared to the year prior:

Adjusted earnings per share: $16.70, versus $14.66

Revenue: $4.74 billion, versus $4.48 billion

US same-store sales growth: 3.63%, versus 1.60%

Company-owned: 4.3%, versus 5.4%

Franchise: 3.63%, versus 1.4%

International same-store sales growth: 1.37%, versus 1.7%

In third quarter results, Domino’s had set a goal to exit the year with a 3% increase in US sales through Uber (UBER). CEO Russell Weiner told investors on the recent earnings call that third-party order aggregators like Uber and DoorDash (DASH) are boosting results because their users are high-income customers.

Tower said investors are focusing on expanding the third-party delivery service to DoorDash and on menu innovation.

At the end of the first quarter, it will no longer have exclusivity with Uber, which could give Domino’s a boost as it lists on other apps.

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