Domino’s Pizza (DPZ) Surpasses Earnings Expectations with Strong Q4 Performance

Domino’s Pizza Inc. (NYSE: DPZ), the largest pizza company in the world, announced its financial results for the fourth quarter and fiscal 2023, showcasing a robust performance that reflects the effectiveness of its “Hungry for MORE” strategy. This strategy, aimed at delivering more sales, stores, and profits, has begun to bear fruit, as evidenced by the company’s quarterly solid outcomes.

Current Quarter’s Performance

Domino’s Pizza reported a global retail sales growth of 4.9% for the fourth quarter, excluding foreign currency impact, with a 5.4% growth for the fiscal year 2023. This growth was supported by a 2.8% increase in U.S. same-store sales and a marginal 0.1% uptick in international same-store sales for the quarter. The company also saw a significant expansion, adding 394 net new stores during the quarter, bringing the fiscal 2023 total to 711 net new stores. This store growth, particularly robust outside the U.S. despite excluding the closed Russian market, underscores Domino’s strategic expansion efforts. Furthermore, income from operations rose by 3.4% for the quarter and 6.7% for the fiscal year, indicating solid operational efficiency and profitability.

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Domino’s Outperforms EPS and Revenue Expectations in Q4

When compared to expectations, Domino’s performance in the fourth quarter was commendable. Analysts had anticipated earnings per share (EPS) of $4.38 and revenue of $1.42 billion for the quarter. The company surpassed these expectations with an EPS of $4.48, albeit slightly missing the revenue expectation of $1.403 billion. This performance highlights Domino’s ability to drive profitability through increased sales and operational efficiencies, even in a competitive and challenging market environment.

Guidance for the Future

Domino’s remains optimistic about its growth trajectory and operational performance. The company has laid out ambitious long-term guidance, expecting to achieve more than 7% annual global retail sales growth, over 1100 annual global net store growth, and more than 8% annual income from operations growth from 2024 to 2028. These targets highlight Domino’s commitment to maintaining its momentum and scaling its operations globally. The continued investment in technology, store expansion, and operational efficiencies are central to achieving these goals, positioning the company well for sustained growth and shareholder value creation.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.