How Does Domino's Earnings Stack Up?

Shares of Domino's Pizza DPZ are down roughly 7% since reporting its Q1 earnings last week, showing what a challenging time it is for restaurants. 

In a vacuum, Domino's results for the quarter were quite strong. The company reported fiscal first-quarter net income of $121.6 million resulting in earnings of $3.07 per share, while net sales rose 4.4% to $873.1 million. Both the EPS and sales numbers came in above analyst estimates and U.S. same-store sales also grew 7.1% on a year-over-year basis. 

In the same quarter last year, net income was $92.6 million, or $2.20 per share. As for global sales, they also grew 4.4% in the first quarter, 5.9% if you exclude the impact of foreign currencies.

As for the international business, the first quarter was the 105th consecutive quarter of international same-store sales growth.

Still, Domino's appears to be better positioned than some of its main competitors.  

Pizza Hut owners Yum! Brands YUM reported Q1 EPS slightly below expectations with sales slightly above. However, same-store sales declined 7% for the period as a result of widespread store closures. Shares of YUM are mostly flat since its report.

Meanwhile, Starbucks SBUX reported a mixed quarter as well, beating expectations on sales but missing on earnings. Comparable sales declined 10% overall. And though the company is reopening 95% of its stores in China, they said they expect the current quarter to be incrementally worse from a financial perspective. Shares of SBUX are down about 1% since its report was released.

The fact that all three of these major restaurant chains are trading down after their reports shows what a challenging environment it is. Investors can at least take solace in the fact that Domino's exceeded expectations across the board when compared to its peers. That should leave them in a better position when we get on the other side of this crisis. 

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