Domino's Pizza, Inc. stock research
FY2023 Q2
Domino's Pizza (DPZ) Gross Margin — Quarter Ended Jun 18, 2023
Revenue was flat compared to the prior quarter, while gross profit increased and cost of revenue decreased. Compared to the same quarter last year, revenue was lower, but gross profit and gross margin both improved as cost of revenue declined more sharply.
Gross margin takeaway
Quarter ended Jun 18, 2023 · FY2023 Q2
Revenue was flat compared to the prior quarter, while gross profit increased and cost of revenue decreased. Compared to the same quarter last year, revenue was lower, but gross profit and gross margin both improved as cost of revenue declined more sharply.
- The improvement in gross margin was primarily driven by a lower cost of revenue relative to revenue, as revenue held steady sequentially and declined slightly year-over-year while cost of revenue decreased in both comparisons.
- Gross margin strengthened compared to both the prior quarter and the same quarter last year, moving from lower to higher levels. Revenue was stable sequentially but lower year-over-year, while cost of revenue decreased more substantially in both periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.5%
Gross profit
$404.7M
Revenue
$1.0B
Cost of revenue
$620.0M
Quarter-over-quarter change
+1.9 pts
Year-over-year change
+3.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 26, 2023 | $1.0B | $385.5M | $638.9M | 37.6% |
| Jun 18, 2023 | $1.0B | $404.7M | $620.0M | 39.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 26, 2023
+1.9 pts
Year-over-year change
Jun 19, 2022
+3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was primarily driven by a lower cost of revenue relative to revenue, as revenue held steady sequentially and declined slightly year-over-year while cost of revenue decreased in both comparisons.
Gross margin strengthened compared to both the prior quarter and the same quarter last year, moving from lower to higher levels. Revenue was stable sequentially but lower year-over-year, while cost of revenue decreased more substantially in both periods.
Monitor changes in working capital efficiency, as the filing notes faster receivable collection and inventory turns support cash flows.