Domino's (DPZ) Stock Up On Q4 Earnings And Revenues Beat
Zacks Investment Research | Feb 20, 2020 09:43PM ET
Share of Domino's Pizza, Inc. (NYSE:DPZ) surged 25.6% after the company reported better-than-expected fourth-quarter 2019 results. Notably, this marked the company’s fourth straight quarter of earnings beat. Both earnings and revenues have improved year over year. The company also reported robust U.S. same-store sales. The fourth quarter also marked the 35th straight quarter of positive U.S. comparable sales and the 104th consecutive quarter of positive international comps.
Domino's robust results can primarily be attributed to solid digital ordering system, robust international expansion and other sales initiatives.
Adjusted earnings in the quarter under review came in at $3.13 per share, which outpaced the Zacks Consensus Estimate of $2.93. The metric also improved 19.5% on a year-over-year basis. The bottom line was driven by higher net income and share repurchase program, which offset higher effective tax rate.
Quarterly revenues improved 6.3% year over year to $1,150.4 million, which surpassed the consensus mark of $1,123 million. Higher supply chain volume, and increase in same-store sales and in-store count both in the United States and international markets drove fourth-quarter revenues. International franchise revenues also increased but were marginally overshadowed by foreign currency headwinds. However, the company recorded lower U.S. company-owned store revenues thanks to the sale of 59 U.S. company-owned stores to existing U.S. franchisees.
Domino's Pizza Inc Price, Consensus and EPS Surprise
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