Domino's Pizza, Inc. stock research
FY2024 Q2
Domino's Pizza (DPZ) Gross Margin — Quarter Ended Jun 16, 2024
Revenue was higher than the preceding quarter and the same quarter a year ago, while cost of revenue was slightly lower sequentially but higher year over year. Gross profit increased both sequentially and annually, resulting in a gross margin that improved from the prior quarter but was slightly weaker than the same quarter last year.
Gross margin takeaway
Quarter ended Jun 16, 2024 · FY2024 Q2
Revenue was higher than the preceding quarter and the same quarter a year ago, while cost of revenue was slightly lower sequentially but higher year over year. Gross profit increased both sequentially and annually, resulting in a gross margin that improved from the prior quarter but was slightly weaker than the same quarter last year.
- The primary observable margin driver was the improvement in gross margin from the immediately preceding quarter, driven by a slight reduction in cost of revenue despite stable revenue. This drove gross profit higher.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue decreased while revenue was stable. Versus the same quarter one year earlier, gross margin weakened slightly as revenue growth was outpaced by a larger increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.8%
Gross profit
$437.0M
Revenue
$1.1B
Cost of revenue
$660.7M
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| 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% |
| Jun 16, 2024 | $1.1B | $437.0M | $660.7M | 39.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 24, 2024
+0.9 pts
Year-over-year change
Jun 18, 2023
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable margin driver was the improvement in gross margin from the immediately preceding quarter, driven by a slight reduction in cost of revenue despite stable revenue. This drove gross profit higher.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue decreased while revenue was stable. Versus the same quarter one year earlier, gross margin weakened slightly as revenue growth was outpaced by a larger increase in cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as its increase year over year has pressured gross margin.