Overview

• U.S. pizza chain's Q2 revenue rose 4%, slightly beating analyst expectations

• Q2 net income missed analyst estimates; adjusted EPS rose 6.8% yr/yr

• Company repurchased $156.2 mln in shares during Q2

Outlook

• Company says it is focused on order growth to drive long-term success

Result Drivers

• SUPPLY CHAIN REVENUES - Revenue growth was primarily due to higher supply chain revenues from increased order volumes and higher food basket pricing

• FRANCHISE ROYALTIES & ADVERTISING - Higher U.S. and international franchise royalties and advertising revenues contributed to revenue growth, driven by net store growth

• SUPPLY CHAIN MARGIN - Supply chain gross margin rose due to procurement productivity, partially offset by higher food costs

Company press release: ID:nPn61qHXNa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Slight Beat*	$1.19 bln	$1.18 bln (22 Analysts)
Q2 EPS		$4.07
Q2 Net Income	Miss	$135.80 mln	$140.29 mln (19 Analysts)
Q2 U.S. Same Store Sales Growth		0.10%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• Wall Street's median 12-month price target for Domino's Pizza Inc is $390.00, about 21.1% above its July 17 closing price of $322.18

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.