Domino’s Pizza DPZ, Inc. It reported fiscal 2022 first-quarter revenue and earnings results that fell short of the Zacks Consensus Estimate. The bottom line is below the consensus for the second quarter in a row, and the top line is below the consensus for the third quarter in a row. Following the defeat, DPZ shares fell 3.5 percent in the premarket session.

Domino’s CEO Rich Ellison said some of the lawsuits are expected to last until May 2022.

Discussion of income and earnings

Domino’s reported adjusted earnings per share of $2.50, topping the Zacks Consensus Estimate of $3.07. This figure is 16.7 percent less than the $3 reported in the last quarter. DPZ’s earnings were impacted by lower net income (year-over-year), partially offset by lower weighted average shares due to share repurchases.

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The operating margin of the company decreased by 310 points compared to the same period last year and reached 36.5%. Net income for the quarter was 9%, down 300 basis points from the year-ago quarter.

Balance sheet

As of March 27, 2022, cash and cash equivalents were $165 million, compared to $148.2 million as of January 2, 2022. Note that the net letter of credit was $44.2 million.

Long-term debt, excluding securities, was $50.1 billion at the end of the fiscal first quarter, compared with $5,014.6 million in the prior quarter. Total inventory was $77.7 million, up from $68.3 million at the end of the 2021 quarter.

Cash operating expenses of $78.8 million at the end of the first quarter were down significantly from $152.9 million in the prior quarter.

Owners’ cost of capital for the quarter was $112.5 million.

During the fiscal first quarter, DPZ repurchased 100,810 shares of common stock under its repurchase program. Domino’s said it has $656.4 million in its stock buyback program. On June 15, 2022, DPZ shareholders also declared a quarterly cash dividend of $1.10 per share, payable on June 30, 2022.

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Domino makes analyst profit forecasting easier

Domino’s Pizza’s first-quarter revenue was $983.7 million, up 13%. Analysts are expecting slightly lower margins of $985 million.

Shares of Domino’s Pizza (DPZ) – Get Free reported losses on Thursday after the chain’s first-quarter profit rose 13% but fell short of analysts’ expectations.

Revenue for the quarter was $983.7 million, up from $873.1 million last year. FactSet analyst consensus last quarter was $985 million.

Domino’s earnings were $117.8 million, or $3 per share, compared to $121.6 million, or $3.07 per share, in the previous quarter. Analysts had expected earnings per share last quarter to be $2.94.

U.S. same-store sales rose 13.4%, beating analysts’ forecasts by 9.7%. And international same-store sales rose 11.8%, beating the forecast by 6%.

During the pandemic, Domino’s is taking advantage of customers who are starting to eat pizza and other food items. Now investors are optimistic about the spread of the vaccine, the recovery of society, and the recovery of the economy.

Shares of the company recently fell 1.9% to $396.24. It has jumped 9% in the last month.

In addition, Domino’s failed to forecast earnings in the fourth quarter. Revenue rose 18% to $1.36 billion following a FactSet analyst consensus of $0.39 billion.

Earnings per share rose to $3.46 from $3.16 a year earlier but fell short of analysts’ forecasts of $3.94.

In other fast food news this month, various media reported that McDonald’s MCD plans to close hundreds of Walmart (WMT) stores without media by the end of the summer.

For now, McDonald’s will have about 150 locations at Walmart stores across the US. That’s down from 500 at the start of the year and a high of 1,000 overall, according to the Wall Street Journal.

Domino’s Pizza: Review of Q1 2022 Results

• Domino’s Pizza Inc (NYSE: DPZ) is expected to report first-quarter results before the market opens on Thursday, April 28th.
• The revenue consensus estimate is $3.08 (+2.7% YoY) and the revenue consensus estimate is $1.03 billion (+4.7% YoY).
• Over the past two years, DPZ has lost 75% of the time and 38% of EPS.
• Over the past three months, EPS forecasts have been revised up and down 19 times. Sales forecasts were revised upward 5 times and downward 15 times.

Factors Shaping the Tone of Domino’s Third Quarter Results (DPZ).

Domino’s Pizza, Inc. (DPZ Quick QuoteDPZ – Free Report) Third Quarter 2022 earnings release is scheduled for October 13, 2022, before the first call. Last month, the company reported a staggering 2.1% increase in profit.

How to dial?

Zack’s consensus estimate for third-quarter earnings is $2.96, down 8.6% from the $3.24 reported in the previous quarter.

In terms of revenue, the consensus is $1,069 million, a year-over-year increase of 7.1%.

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Zack’s Rank: Domino’s has Zack’s rank #3. The Zack Rank 1 alumni list can be viewed here.