Domino’s Pizza (DPZ) Q2 2024 earnings summary

Executive summary

• Global retail sales grew 7.2% year-over-year in Q2 2024, with U.S. sales up 6.8% and international sales up 7.7% (excluding FX); U.S. same store sales rose 4.8%, international up 2.1%.

• Net income increased 29.8% to $142.0M, and diluted EPS rose 30.8% to $4.03 in Q2 2024.

• Net store growth was 175 globally in Q2 2024, with 32 new U.S. stores and 143 international.

• Income from operations increased 0.4% in Q2 2024; excluding a $2.7M FX headwind, it rose 1.7%.

• Remain on track for annual global retail sales growth of 7%+ and operating profit growth of 8%+ for 2024.

Financial highlights

• Total revenues reached $1.10 billion in Q2 2024, up 7.1% year-over-year; gross margin improved to 39.8%.

• U.S. retail sales increased 6.8%, international retail sales up 7.7% (ex-FX).

• U.S. same-store sales rose 4.8%, driven by transaction growth and loyalty program success.

• Free cash flow for the first two quarters was $230.5M, up from $204.3M year-over-year.

• Operating cash flow for the first two quarters was $274.2M, up from $242.3M year-over-year.

Outlook and guidance

• Maintain guidance for 7%+ global retail sales growth and 8%+ operating income growth for 2024 (ex-FX).

• U.S. comp sales expected above 3% long-term guide for 2024; Q3 comps to be slightly below Q2 due to one less Boost Week.

• International net store growth may fall 175–275 below 2024 goal due to challenges with Domino's Pizza Enterprises.

• Guidance for 1,100+ global net stores temporarily suspended pending further clarity on international performance.

• Cautions remain regarding macroeconomic conditions, commodity prices, labor costs, and FX volatility.