Domino's Pizza Serves Up A Tasty Q1 Surprise, Setting The Table For A Profitable Year
Portfolio Pulse from Shivani Kumaresan
Domino's Pizza Inc (NYSE:DPZ) reported a 6% year-on-year increase in Q1 FY24 sales to $1.085 billion, surpassing analyst expectations. The growth was driven by higher supply chain revenues, U.S. franchise royalties and fees, and company-owned store revenues. Global retail sales rose 7.3%, with U.S. same-store sales up 5.6% and international same-store sales up 0.9%. The company also saw a net increase of 164 stores, expanded gross and operating margins, and reported an EPS of $3.58, beating estimates. Operating cash flow reached $123.5 million, with free cash flow of $103.3 million. Domino's declared a quarterly dividend of $1.51 per share and repurchased $25 million in stock. The company remains on track to meet its long-term growth targets.
April 29, 2024 | 11:55 am
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Domino's Pizza Inc reported a strong Q1 FY24 performance with sales and EPS exceeding expectations, driven by growth in supply chain revenues and franchise fees. The company also declared a quarterly dividend and continued its share repurchase program.
The positive earnings report, exceeding analyst expectations, and the announcement of a dividend payment are likely to instill investor confidence and drive short-term stock price appreciation. The share repurchase program further signals the company's belief in its own stock value, supporting a positive outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100