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DPZ (Domino's Pizza) Gross Margin % : 39.19% (As of Dec. 2024)


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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. 2024 was $566 Mil. Domino's Pizza's Revenue for the three months ended in Dec. 2024 was $1,444 Mil. Therefore, Domino's Pizza's Gross Margin % for the quarter that ended in Dec. 2024 was 39.19%.


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: 30.82   Med: 38.26   Max: 39.28
Current: 39.28


During the past 13 years, the highest Gross Margin % of Domino's Pizza was 39.28%. The lowest was 30.82%. And the median was 38.26%.

DPZ's Gross Margin % is ranked worse than
60.93% of 343 companies
in the Restaurants industry
Industry Median: 46.83 vs DPZ: 39.28

Domino's Pizza had a gross margin of 39.19% for the quarter that ended in Dec. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Domino's Pizza was 0.00% 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.

* Premium members only.

Domino's Pizza Gross Margin % Chart

Domino's Pizza Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.73 38.74 36.34 38.56 39.28

Domino's Pizza Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.42 38.89 39.81 39.23 39.19

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.


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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. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=1848.5 / 4706.416
=(Revenue - Cost of Goods Sold) / Revenue
=(4706.416 - 2857.914) / 4706.416
=39.28 %

Domino's Pizza's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=565.9 / 1443.914
=(Revenue - Cost of Goods Sold) / Revenue
=(1443.914 - 878.06) / 1443.914
=39.19 %

* 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.

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  (NAS: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 39.19% for the quarter that ended in Dec. 2024 => 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

Thank you for viewing the detailed overview of Domino's Pizza's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Domino's Pizza Business Description

Address
30 Frank Lloyd Wright Drive, Ann Arbor, MI, USA, 48105
Domino's is a restaurant operator and franchiser with nearly 21,400 global stores across more than 90 international markets at the end of 2024. 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 25 domestic (and five Canadian) dough manufacturing and supply chain facilities, which centralize purchasing, preparation, and last-mile delivery for the firm's US and Canadian restaurants. With roughly $19.2 billion in 2024 system sales, Domino's is the largest player in the global pizza market, ahead of Pizza Hut, Little Caesars, and narrow-moat Papa John's.
Executives
Cynthia A Headen officer: EVP, Supply Chain Services 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
Reddy Sandeep officer: EVP, Chief Financial Officer C/O GUESS?, INC., 1444 SOUTH ALAMEDA STREET, LOS ANGELES CA 90021
Kelly E Garcia officer: EVP. Chief Technology Officer 30 FRANK LLOYD WRIGH DR, ANN ARBOR MI 48105
James A Goldman director
Diana F Cantor director 9201 FOREST HILL AVENUE, RICHMOND VA 23235
Andrew Balson director, 10 percent owner
Andy Ballard director ONE MARITIME PLAZA, SUITE 1350, SAN FRANCISCO CA 94111
Jessica L Parrish officer: VP, Treasurer, Corp Controller 30 FRANK LLOYD WRIGHT DRIVE, ANN ARBOR MI 48105
Frank Garrido officer: EVP, U.S. Operations & Support 30 FRANK LLOYD WRIGHT DRIVE, ANN ARBOR MI 48105
Russell J Weiner officer: President, Domino's U.S.A. 30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Joseph Hugh Jordan officer: EVP, International 30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Sam Jackson officer: EVP, Human Resources 30 FRANK LLOYD WRIGHT DRIVE, ANN ARBOR MI 48105
Lisa V Price officer: EVP, Chief Human Resources Ofc 30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Patricia E Lopez director 333 LUDLOW ST, STAMFORD CT 06902