Domino's Pizza, Inc. stock research
FY2024 Q3
Domino's Pizza (DPZ) Gross Margin — Quarter Ended Sep 8, 2024
Revenue was stable compared to the prior quarter and higher than the same quarter a year ago. Gross profit decreased relative to the prior quarter but increased year-over-year, while cost of revenue declined slightly from the prior quarter and rose compared to the same period last year, resulting in a gross margin that weakened sequentially but improved annually.
Gross margin takeaway
Quarter ended Sep 8, 2024 · FY2024 Q3
Revenue was stable compared to the prior quarter and higher than the same quarter a year ago. Gross profit decreased relative to the prior quarter but increased year-over-year, while cost of revenue declined slightly from the prior quarter and rose compared to the same period last year, resulting in a gross margin that weakened sequentially but improved annually.
- The strongest observable margin driver is the increase in same store sales reported in the filing, which contributed to the year-over-year improvement in gross margin as revenue grew faster than cost of revenue.
- Gross margin weakened slightly from the prior quarter, but improved compared to the same quarter a year ago. Revenue was stable sequentially and higher year-over-year, while gross profit and cost of revenue both decreased from the prior quarter and increased from the same period last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.2%
Gross profit
$423.7M
Revenue
$1.1B
Cost of revenue
$656.4M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| 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% |
| Sep 8, 2024 | $1.1B | $423.7M | $656.4M | 39.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 16, 2024
-0.6 pts
Year-over-year change
Sep 10, 2023
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in same store sales reported in the filing, which contributed to the year-over-year improvement in gross margin as revenue grew faster than cost of revenue.
Gross margin weakened slightly from the prior quarter, but improved compared to the same quarter a year ago. Revenue was stable sequentially and higher year-over-year, while gross profit and cost of revenue both decreased from the prior quarter and increased from the same period last year.
Monitor the trend in same store sales growth, as it directly influences revenue and gross margin performance.