Domino's Pizza, Inc. stock research
FY2024 Q1
Domino's Pizza (DPZ) Gross Margin — Quarter Ended Mar 24, 2024
Revenue increased modestly compared to the prior quarter and more notably versus a year ago. Gross profit improved while cost of revenue rose less than revenue, leading to a slightly higher gross margin compared to both periods.
Gross margin takeaway
Quarter ended Mar 24, 2024 · FY2024 Q1
Revenue increased modestly compared to the prior quarter and more notably versus a year ago. Gross profit improved while cost of revenue rose less than revenue, leading to a slightly higher gross margin compared to both periods.
- The strongest observable margin driver is the relationship between revenue growth and the slower increase in cost of revenue, which allowed gross profit to expand at a faster rate than costs.
- Compared to the immediately preceding quarter, gross margin improved slightly from a similar level. Relative to the same quarter one year earlier, gross margin strengthened at a more noticeable pace, as revenue growth outpaced the increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.9%
Gross profit
$421.9M
Revenue
$1.1B
Cost of revenue
$662.8M
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+1.3 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% |
| Mar 24, 2024 | $1.1B | $421.9M | $662.8M | 38.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 10, 2023
+0.1 pts
Year-over-year change
Mar 26, 2023
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and the slower increase in cost of revenue, which allowed gross profit to expand at a faster rate than costs.
Compared to the immediately preceding quarter, gross margin improved slightly from a similar level. Relative to the same quarter one year earlier, gross margin strengthened at a more noticeable pace, as revenue growth outpaced the increase in cost of revenue.
Monitor any changes in same store sales trends, as the filing notes an increase in both U.S. and international same store sales during the quarter.