Domino's Pizza (Domino's Pizza) Gross Margin % : 38.42% (As of Dec. 2023)

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What is Domino's Pizza Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Domino's Pizza's Gross Profit for the three months ended in Dec. 2023 was $539 Mil. Domino's Pizza's Revenue for the three months ended in Dec. 2023 was $1,403 Mil. Therefore, Domino's Pizza's Gross Margin % for the quarter that ended in Dec. 2023 was 38.42%.

The historical rank and industry rank for Domino's Pizza's Gross Margin % or its related term are showing as below:

DPZ' s Gross Margin % Range Over the Past 10 Years
Min: 29.83 Med: 37.15 Max: 38.76
Current: 38.56

During the past 13 years, the highest Gross Margin % of Domino's Pizza was 38.76%. The lowest was 29.83%. And the median was 37.15%.

DPZ's Gross Margin % is ranked worse than
65.01% of 343 companies
in the Restaurants industry
Industry Median: 46.87 vs DPZ: 38.56

Domino's Pizza had a gross margin of 38.42% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Domino's Pizza was -0.30% per year.

Domino's Pizza Gross Margin % Historical Data

The historical data trend for Domino's Pizza's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Domino's Pizza Gross Margin % Chart

Domino's Pizza Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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38.76

38.73

38.74

36.34

38.56

Domino's Pizza Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															36.77	37.64	39.49	38.76	38.42

Competitive Comparison of Domino's Pizza's Gross Margin %

For the Restaurants subindustry, Domino's Pizza's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Domino's Pizza's Gross Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Domino's Pizza's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Domino's Pizza's Gross Margin % falls into.

Domino's Pizza Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Domino's Pizza's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	1727.4	/	4479.358
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4479.358 - 2751.941)	/	4479.358
	=	38.56 %

Domino's Pizza's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	539	/	1402.972
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1402.972 - 863.927)	/	1402.972
	=	38.42 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Domino's Pizza (NYSE:DPZ) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Domino's Pizza had a gross margin of 38.42% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Domino's Pizza Gross Margin % Related Terms

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Domino's Pizza (Domino's Pizza) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Domino's Pizza Inc (NYSE:DPZ) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

DPZ:Mexico EZV:Germany EZV:Germany D2PZ34:Brazil DPZ:Austria

Address

30 Frank Lloyd Wright Drive, Ann Arbor, MI, USA, 48105

Website

https://www.dominos.com

Domino's is a restaurant operator and franchiser with nearly 20,000 global stores across more than 90 international markets at the end of 2022. The firm generates revenue through the sales of pizza, wings, salads, sandwiches, and desserts at company-owned stores, royalty and marketing contributions from franchise-operated stores, and its network of 26 domestic (and five Canadian) dough manufacturing and supply chain facilities, which centralize purchasing, preparation, and last-mile delivery for the firm's U.S. and Canadian restaurants. With roughly $17.7 billion in 2022 system sales, Domino's is the largest player in the global pizza market, ahead of Pizza Hut, Little Caesars, and Papa John's.

Executives

Sam Jackson	officer: EVP, Human Resources	30 FRANK LLOYD WRIGHT DRIVE, ANN ARBOR MI 48105
Andy Ballard	director	ONE MARITIME PLAZA, SUITE 1350, SAN FRANCISCO CA 94111
Lisa V Price	officer: EVP, Chief Human Resources Ofc	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Cynthia A Headen	officer: EVP, Supply Chain Services	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Andrew Balson	director, 10 percent owner
Patricia E Lopez	director	333 LUDLOW ST, STAMFORD CT 06902
Joseph Hugh Jordan	officer: EVP, International	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
James A Goldman	director
Reddy Sandeep	officer: EVP, Chief Financial Officer	C/O GUESS?, INC., 1444 SOUTH ALAMEDA STREET, LOS ANGELES CA 90021
Russell J Weiner	officer: President, Domino's U.S.A.	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Jessica L Parrish	officer: VP, Treasurer, Corp Controller	30 FRANK LLOYD WRIGHT DRIVE, ANN ARBOR MI 48105
Allison Richard E Jr	officer: President, Domino's Int'l	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Kevin Scott Morris	officer: EVP, Gen'l Counsel, Secretary	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Diana F Cantor	director	9201 FOREST HILL AVENUE, RICHMOND VA 23235
Timothy P. Mcintyre	officer: EVP, Comm, Investor Relations	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105