Monday April 28, 2025, 12:09:49
DPZ (Post-Call): Apple-to-Apples Q1 EPS Falls Short of Consensus
Earlier today (Monday), Domino’s reported that its first-quarter EPS amounted to $4.33. This was above our $3.95 estimate and sell-side consensus (according to Consensus Metrix) of $4.06. But importantly, in its 10-Q out this morning, Domino’s indicates that it “recorded a positive adjustment to the carrying amount of its investment in DPC Dash [Domino’s China; 1405.HK; Not Rated] of $24.0 million in the first quarter of 2025, with the gain recorded in other income in its condensed consolidated statements of income.” Shares of DPC Dash rose by +29.2% over the course of Domino’s Q1. By our math, we calculate that this added roughly +54 cents to Domino’s Q1 EPS, in line with our expectations. Thus, Q1 EPS excluding this factor may have been more like $3.79. Please note that this DPC Dash-related EPS help was not included in our $3.95 Q1E EPS estimate, nor in the $4.06 consensus figure.