Domino’s Pizza (NYSE: $DPZ) is an American multinational pizza chain founded in 1960 by James Monaghan in Ypsilanti, Michigan. Today, it has stores in over 83 countries, and is renown for its innovative ordering system that makes it easy to order pizza online with just a few clicks.
On Monday, February 26, 2024, the pizza chain announced its fourth quarter and fiscal 2023 results, missing revenue estimates.
Fourth Quarter and FY23 Results
The Company reported a revenue of $1.40 billion in the fourth quarter, missing analyst forecasts of $1.42 billion by 1.3%. However, its $4.48 EPS beat estimates of $4.40 by 1.9%. Moreover, the free cash flow was down 22.7% from the previous quarter, totaling $122.6 million.
Global retail sales experienced a growth of 4.9% in Q4, excluding the impact of FX fluctuations. Additionally, there was a gain of 5.4% for fiscal year 2023. Furthermore, U.S. store sales rose by 2.8% in the fourth quarter and 1.6% in fiscal year 2023.
International same-store sales also experienced a growth of 0.1% in the fourth quarter and 1.7% in the fiscal year 2023. Income from operations soared by 3.4% in the fourth quarter and 6.7% in 2023. In addition, the supply gross margin gained 2.7% points in Q4, compared to Q422, fueled by lower food costs, leading to procurement productivity.
The Board of Directors has authorized a 25% increase in the quarterly dividend to $1.51 per share and approved an additional $1.0 billion share repurchase program.
CEO’s Comments
The CEO of Dominos, Russell Weiner, said, “Our strong fourth quarter demonstrates that our Hungry for MORE strategy is already delivering results. This strategy, which we recently unveiled at our Investor Day, is our plan to deliver MORE sales, MORE stores, and MORE profits.”
He further added, “Domino’s foundation has never been stronger. Our positive U.S. transactions and same store sales growth in both our delivery and carryout channels in the fourth quarter underscore the strength and momentum in our business. These results give us confidence in our brand and the Company’s ability to win and create meaningful value for our shareholders.”
The results do not include the impact of the Russian market for Q4 and the whole year. The foreign currency impact was 4.5% and 5.2% for the fourth quarter and 2023, respectively.
Stock Update: $DPZ
$DPZ is currently trading at $462.61, with a gain of 6.46% from its previous close of $433.65. Domino’s stock rose 5.4% during pre-market trading after it released its quarterly and full-year earnings report. At the time of writing, the market cap is $16.14 billion, with a volume of 1,308,578.
Is $DPZ Worth Buying in 2024?
Domino’s is a well-known pizza chain restaurant with millions of satisfied customers. The company has built its brand around the world with the quality delivery of food. It has a solid financial position, which makes it worth buying. However, you must be cautious of market movements.
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