Domino's Pizza, Inc. stock research
FY2023 Q3
Domino's Pizza (DPZ) Gross Margin — Quarter Ended Sep 10, 2023
Revenue was flat compared to the prior quarter, while gross profit and gross margin both decreased slightly. Compared to the same quarter one year earlier, revenue was lower, but gross profit and gross margin improved as cost of revenue declined more sharply.
Gross margin takeaway
Quarter ended Sep 10, 2023 · FY2023 Q3
Revenue was flat compared to the prior quarter, while gross profit and gross margin both decreased slightly. Compared to the same quarter one year earlier, revenue was lower, but gross profit and gross margin improved as cost of revenue declined more sharply.
- The strongest observable margin driver is the change in cost of revenue, which decreased compared to both the prior quarter and the year-ago quarter, supporting gross margin improvement.
- Compared to the immediately preceding quarter, gross margin weakened slightly due to a larger increase in cost of revenue relative to revenue. Compared to the same quarter one year earlier, gross margin improved, reflecting a substantial reduction in cost of revenue despite lower revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.8%
Gross profit
$398.2M
Revenue
$1.0B
Cost of revenue
$629.2M
Quarter-over-quarter change
-0.7 pts
Year-over-year change
+3.0 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% |
| Sep 10, 2023 | $1.0B | $398.2M | $629.2M | 38.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 18, 2023
-0.7 pts
Year-over-year change
Sep 11, 2022
+3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue, which decreased compared to both the prior quarter and the year-ago quarter, supporting gross margin improvement.
Compared to the immediately preceding quarter, gross margin weakened slightly due to a larger increase in cost of revenue relative to revenue. Compared to the same quarter one year earlier, gross margin improved, reflecting a substantial reduction in cost of revenue despite lower revenue.
Monitor the trend in cost of revenue relative to revenue to assess whether gross margin stability can be maintained.