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Domino’s Pizza: Analysts’ Earnings Expectations in 2019

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Jan. 3 2019, Updated 7:30 a.m. ET

Domino’s EPS growth

In the first three quarters of 2018, Domino’s Pizza (DPZ) posted an adjusted EPS of $5.79—an increase of 50.4% from $3.85 in the same three quarters in 2017.

Domino’s Pizza’s EPS growth was driven by revenue growth, the lower effective tax rate, and share repurchases. However, the lower EBIT margins offset some of the increase in the EPS.

For the first three quarters in 2018, Domino’s Pizza’s effective tax rate was 14.9%—compared to 30.0% in the same three quarters in 2017. The company repurchased ~1.75 million shares for ~429.2 million in the first three quarters of 2018. By the end of the third quarter, Domino’s Pizza had $320.8 million still available under its share repurchase program.

However, some of the growth in the company’s EPS was offset by a decline in the EBIT margin from 18.3% to 16.7%. The new accounting standard and the lower operating margin for Domino’s Pizza’s supply chain lowered the EBIT margins during the same period.

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Analysts’ EPS expectations

Analysts expect Domino’s Pizza to post an EPS of $2.70 in the fourth quarter. The total EPS for 2018 would be $8.48, which represents 43.3% growth from $5.91 in 2017. For 2019, analysts expect the company to post an EPS of $9.54, which represents an increase of 12.6% from $8.48 in 2018.

In comparison, analysts expect Yum! Brands’ (YUM) EPS to rise 25.8% in 2018. Analysts expect Papa John’s (PZZA) EPS to fall 47.8%.

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