Fast-food pizza chain Domino’s (NYSE:DPZ) will be reporting results this Monday before the bell. Here’s what to look for.
Domino’s beat analysts’ revenue expectations last quarter, reporting revenues of $1.15 billion, up 6.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a narrow beat of analysts’ revenue estimates.
Is Domino’s a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Domino’s revenue to grow 5.1% year on year, improving from the 2.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Domino’s has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Domino’s peers in the traditional fast food segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Yum China delivered year-on-year revenue growth of 8.8%, beating analysts’ expectations by 3.9%, and Wendy’s reported a revenue decline of 5.5%, topping estimates by 1.3%. Yum China traded up 9.7% following the results while Wendy’s was down 3.7%.
Read our full analysis of Yum China’s results here and Wendy’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the traditional fast food stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.2% on average over the last month. Domino’s is down 6.1% during the same time and is heading into earnings with an average analyst price target of $482.97 (compared to the current share price of $386.95).
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