Domino’s Pizza (DPZ) Q3 2024 earnings summary

Executive summary

• Global retail sales grew 5.1% in Q3 2024 and 6.5% year-to-date, with U.S. same-store sales up 3.0% and international same-store sales up 0.8% (excluding FX).

• Net income for Q3 2024 was $146.9 million, with income from operations up 5.0% year-over-year; excluding $1.4M FX impact, up 5.7%.

• Net store growth was 72 in Q3 2024, with 24 in the U.S. and 48 internationally, bringing the system to over 21,000 locations worldwide.

• U.S. retail sales and order count growth outpaced the QSR pizza category, driven by value, innovation, and loyalty programs.

• International growth lagged historical performance due to macroeconomic and geopolitical pressures.

Financial highlights

• Total revenues rose 5.1% to $1.08 billion in Q3 2024, with gross margin up 6.4% and net income margin at 13.6%.

• Diluted EPS was $4.19 in Q3, up 0.2% year-over-year, aided by share repurchases.

• Operating cash flow was $446.9 million for the first three quarters, up 5.9% year-over-year.

• U.S. carryout comps rose 5.4%, delivery comps up 1.3%; Uber sales mix reached 2.7%.

• Repurchased 443,302 shares for $190M in Q3; $926.3M remains authorized for repurchases.

Outlook and guidance

• 2024 guidance: ~6% annual global retail sales growth, ~8% annual operating profit growth (ex-FX), and global net store growth of 800–850.

• 2025 guidance: global retail sales growth slightly below long-term target, mainly due to international softness; operating profit growth still ~8%.

• Long-term (2026–2028): 7%+ annual global retail sales growth, 8%+ annual operating profit growth (ex-FX).

• U.S. same-store sales growth expected at 3%+ annually; international same-store sales growth reset to 1%-2% for 2024-2025.

• Management expects continued growth supported by technology, marketing, and operational initiatives.