Domino's Earnings Preview: Revenue Expected to Grow 4.3% YoY

Domino's Pizza (DPZ) is set to report Q2 earnings on Monday, with analysts expecting a 4.3% YoY revenue increase to $1.15 billion and adjusted earnings of $3.96 per share. The company missed revenue expectations by 1.2% in Q1, reporting revenues of $1.11 billion, up 2.5% YoY. Analysts have generally reconfirmed their estimates over the last 30 days, suggesting a steady performance heading into earnings.

Domino's Pizza, Inc. (DPZ) is scheduled to release its second-quarter 2025 earnings report on Monday, July 21, before the opening bell. Analysts expect the company to report a 4.3% year-over-year (YoY) revenue increase to $1.15 billion, with adjusted earnings per share (EPS) of $3.96. The company missed revenue expectations by 1.2% in the first quarter, reporting revenues of $1.11 billion, up 2.5% YoY [1].

Domino's has been benefiting from several strategic initiatives, including robust digitalization and menu innovation. The company launched the Parmesan Stuffed Crust Pizza in the first quarter of 2025, which is likely to have contributed to its second-quarter performance [1]. Additionally, the company has been expanding its presence on aggregator platforms, with a significant partnership with DoorDash [1].

The company's Rewards program has played a pivotal role in boosting its U.S. performance and driving customer engagement. Domino's has also been benefiting from robust growth in international markets, particularly in India and China [1]. For the second quarter, analysts expect U.S. company-owned and franchise store comps to grow by 5.5% and 6.8%, respectively, year over year [1].

Despite these positive factors, Domino's is expected to face challenges such as weak traffic among lower-income consumers, which may have disproportionately affected its delivery business. Additionally, inflationary pressures in commodity and labor costs, as well as macroeconomic challenges, are likely to have negatively impacted the company's bottom line [1].

Analysts have generally reconfirmed their estimates over the last 30 days, suggesting a steady performance heading into earnings. The Zacks Consensus Estimate for earnings is pegged at $3.93 per share, indicating a 2.5% decrease from the prior-year quarter's reported figure [1]. The consensus mark for revenues is pegged at $1.14 billion, indicating growth of 4% from a year-ago actual [1].

Domino's has an Earnings ESP of +0.49% and a Zacks Rank of 3 at present, increasing the odds of an earnings beat. The company has an impressive track record, beating the Zacks Consensus Estimate in three of the trailing four quarters and missing once, with an average surprise of 6.5% [1].

References:
[1] https://finance.yahoo.com/news/dominos-q2-earnings-deck-efforts-141200114.html