Investors Are Optimistic before Domino’s 2Q17 Earnings



Stock performance

Domino’s Pizza (DPZ) will announce its 2Q17 earnings before the market opens on July 25, 2017.

In 1Q17, Domino’s posted adjusted EPS (earnings per share) of $1.26 on revenues of $624.2 million. Analysts expected the company to post EPS of $1.16 on revenues of $615.8 million. The company outperformed analysts’ same-store sales growth estimates of 12% for company-owned restaurants by posting 14.1%. Better-than-expected 1Q17 earnings and initiatives taken by the company’s management to enhance customers’ experience increased investors’ confidence. As a result, Domino’s stock price rose. As of July 12, 2017, the company was trading at $213.54, which represents 18.0% growth since the announcement of its 1Q17 earnings on April 27, 2017.

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YTD performance

So far, 2017 has been a good year for Domino’s Pizza. The company’s stock has risen 33.5% since the beginning of 2017. During the same period, Yum! Brands (YUM) and Papa John’s (PZZA) have returned 17.0% and -9.5%, respectively.

The S&P 500 INDEX (SPX) and the iShares U.S. Consumer Services ETF (IYC) have returned 8.7% and 8.5%, YTD (year-to-date), respectively. IYC has invested 11.6% of its holdings in restaurant and travel companies.

Series overview

With Domino’s 2Q17 earnings around the corner, we’ll look at analysts’ expectations for 2Q17. We’ll also cover analysts’ revenue and EPS estimates for the next four quarters. Finally, we’ll wrap up this series by looking at Domino’s valuation multiple and analysts’ recommendations.

First, let’s start by looking at Domino’s 2Q17 revenue expectations.


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