Domino's Q4 U.S. Comps Growth Lags, Asia Drives International Comps

Domino's Pizza, Inc. DPZ recently reported fourth-quarter fiscal 2024 results, wherein both top and bottom lines increased year over year, but missed the Zacks Consensus Estimate.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.U.S. Same-Store SalesIn the fiscal fourth quarter, U.S. retail sales increased 2.3%, supported by both net store expansion and a 0.4% rise in same-store sales. This growth was driven by a 3.2% increase in carryout sales, while delivery sales declined 1.4%, indicating ongoing macroeconomic and competitive challenges that affected lower-income consumers. Pricing adjustments contributed 2.3% to sales, with California seeing high-single-digit price increases, while Uber transactions accounted for 2.7% of total sales during the quarter. Our model predicted U.S. same-store sales to increase 4% from the year-ago level.Despite these tailwinds, a shift toward carryout, which typically generates a lower average ticket than delivery, partially offset overall gains. Traffic remained stable but faced a minor headwind due to the timing of New Year’s Eve. For the full year, delivery made up 46% of total transactions and 57% of sales, whereas carryout accounted for 54% of transactions and 43% of sales. The shift toward carryout became more pronounced in 2024, driven by a strong 6.2% carryout sales increase. Meanwhile, full-year delivery sales saw modest growth, with a 1.1% gain.DPZ’s International Same-Store Sales GainsComps at international stores, excluding foreign currency translation, rose 2.7% compared with 0.1% in the prior-year quarter. The metric benefited from improvement in Asia, which was driven by robust comps in India as well as broadly across Europe.Domino's Pizza Inc Price, Consensus and EPS Surprise Domino's Pizza Inc price-consensus-eps-surprise-chart | Domino's Pizza Inc QuoteDPZ’s GuidanceDomino’s Pizza remains focused on driving market share growth in 2025 despite ongoing macroeconomic pressures. The company expects global retail sales growth to align with 2024 levels and predicts U.S. same-store sales to be in line with its long-term 3% annual growth target. However, challenges such as inflation and consumer spending shifts could impact this outlook, with stronger performance anticipated in the latter half of the year due to initiatives like expanded aggregator partnerships and enhanced loyalty programs.Domino’s continues to expect to open more than 175 net U.S. locations while maintaining a disciplined international growth strategy. The company remains committed to its “Hungry for MORE” strategy, emphasizing innovation, operational efficiency and value-driven promotions to sustain momentum in a competitive landscape.DPZ’s Zacks RankDomino's currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Peer ReleasesRestaurant Brands International, Inc. QSR reported fourth-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.During the quarter, consolidated comps increased 2.5% year over year and net restaurants grew 3.4%. Global system-wide sales rose 5.6% year over year. QSR unveiled its long-term consolidated performance expectations from 2024 to 2028. It anticipates achieving more than 3% growth in comparable sales and at least 5% net restaurant increase.McDonald's Corporation MCD reported fourth-quarter 2024 results, wherein earnings were in line with the Zacks Consensus Estimate but revenues missed the same. Both top and bottom lines decreased year over year. Its Accelerating-the-Arches strategy remains the right approach for expanding market share.At company-operated restaurants, sales were $2.31 billion, down 7% year over year. Sales at franchise-operated restaurants amounted to $3.95 billion, which increased 2% year over year. The global comps increased 0.4% compared with 3.4% in the prior-year quarter. MCD’s comps increased after witnessing a decline in the preceding two quarters.YUM! Brands, Inc. YUM reported fourth-quarter 2024 results, with adjusted earnings and total revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.The company’s top-line performance reflected solid contributions from the KFC, Pizza Hut and Taco Bell divisions. YUM reported progress in the digital space, with digital sales rising approximately 15% and the digital mix surpassing 50%, moving closer to its long-term goal of 100% digital sales. Worldwide system sales, excluding foreign currency translation, grew 8% year over year, with Taco Bell increasing 14% and KFC rising 6%. The metric rose 3% year over year for Pizza Hut.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report McDonald's Corporation (MCD): Free Stock Analysis Report Yum! Brands, Inc. (YUM): Free Stock Analysis Report Domino's Pizza Inc (DPZ): Free Stock Analysis Report Restaurant Brands International Inc. (QSR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks