DPZNEUTRAL

Gross Margin

40.4%

Updated 198h ago

Sector Performance

44th percentile

DPZ

40.4%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

DPZ’s gross margin of 40.4% means that for every dollar of revenue, the company keeps about 40.4 cents after paying the direct costs of making its pizza and other products.

This 40.4% sits below the sector median of 44.4%, placing DPZ in the 45th percentile among its peers—slightly weaker than the typical competitor. Because the year-over-year and quarter-over-quarter changes are listed as N/A, there is no data to confirm whether the margin is improving or declining. The combination of a below-median margin with no visible trend leaves limited basis for bullish or bearish conviction, making it a neutral input that does not clearly signal higher risk or opportunity. This flat, middle-of-the-pack gross margin neither strengthens nor contradicts the overall NEUTRAL verdict on DPZ, as the stock’s case remains balanced on other factors.

Frequently Asked Questions

What does the Gross Margin tell investors about DPZ?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are DPZ's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.