Domino's misses on earnings, revenue as Wall Street remains optimistic about value platform

Domino's (DPZ) posted fourth quarter results that mostly missed Wall Street's expectations.

On Monday before market open, the pizza chain reported that revenue increased 2.9% year-over-year to $1.44 billion in the fourth quarter, driven higher by a 4.4% increase in the food and cardboard costs for stores, in addition to higher order volumes. Same-store sales increased 0.4%, instead of the 1.72% jump the street predicted. Adjusted earnings came in lower too, at $4.89 per share, compared to an estimate of $4.93.

For the full year, Domino's missed on revenue and earnings too, but beat slightly on international same-store sales growth with an increase of 1.6%. 2024 marked the 31st consecutive year of same store sales growth.

In the release CEO Russell Weiner said its value strategy, dubbed Hungry for MORE, drove "strong order count growth, even in the face of a challenging global macroeconomic environment."

In the US in particular, he said its "pillar of Renowned Value" helped to gain market share among its quick-service restaurant pizza competitors. For the quarter, US sales ticked higher, up 0.4%, but that wasn't as high as the 1.72% gain the Street wanted. Weiner said he remains "confident" that Domino's will "continue to win and grow market share."

Investors may have already anticipated these poor results.

After battling bad weather conditions in the fourth quarter, Citi analyst Jon Tower wrote in a client note prior to earnings that "shares appear to have already moved on from what is likely a soft fourth quarter and start to the first quarter." Investors have their eye on growth drivers that could turn the tide in 2025 like menu innovation and third-party deliver partners.

Ahead of the company's report on Monday before the market open, shares are up more than 12% year to date, compared to the S&P 500's (^GSPC) 4% gain. However, Domino's one-year gain of 13% lags the S&P's 23% return.

Here's Domino's reported in the fourth quarter, compared to the Bloomberg consensus estimates:

• Adjusted earnings per share: $4.89, versus $4.93

• Revenue: $1.44 billion, versus 1.48 billion

• US same-store sales growth: +0.4%, versus +1.72%

  • Company-owned: -0.7%, versus +1.79%

  • Franchise: +0.5%, versus +1.74%

• International same-store sales growth: +2.7%, versus +1.63%

Here's Domino's reported in its fiscal 2024 results, compared to the Bloomberg consensus estimates:

• Adjusted earnings per share: $16.69, versus $16.70

• Revenue: $4.71 billion, versus $4.74 billion

• US same-store sales growth: +3.2%, versus +3.63%

  • Company-owned: +3.5%, versus +4.3%

  • Franchise: +3.2%, versus +3.63%

• International same-store sales growth: +1.6%, versus +1.37%