Shares of Domino’s Pizza, Inc. (NYSE:DPZ) opened nearly 6% lower on Tuesday after the Company posted weaker-than-expected third-quarter earnings and revenue. The fast food chain also trimmed its long-term sales forecast amid fierce competition from third-party food delivery services.
Domino’s said it earned USD 2.05 per share for the period ended September, short of Wall Street’s call for USD 2.07. This compares to earnings of USD 1.95 per share a year earlier. Net revenue grew 4.4% to USD 820.8 Million. Analysts on average expected Domino’s to report revenue of USD 823.9 Million.
The pizza chain delivered both international and domestic comparable sales growth during its third quarter. Sales at U.S. stores open at least a year grew 2.5%, while international same-store-sales rose 1.7%.
“It was a good quarter for Domino’s, as we continue to lean on our fundamental strength against a unique competitive environment,” said Ritch Allison, Domino’s Chief Executive Officer. “Strong unit growth and positive comps yielded a solid and balanced quarter of retail sales growth across both the U.S. and international businesses. We remain steadfastly focused on driving profitable growth for the Domino’s system, and most importantly, for our franchisees.”
The restaurant chain also lowered its long-term forecast for both domestic and international same-store sales growth. It now expects U.S. same-store sales growth in a range of 2% to 5%, down from a prior range of 3% to 6%. The outlook for international same-store sales growth was trimmed from a range of 3% to 6% to a range of 1% to 4%.
In an effort to counter third-party delivery services like GrubHub and DoorDash, Domino’s said it is building more stores closer together to decrease its own delivery time. Fortressing,” the Company’s name for the strategy, presents the risk of cannibalization, but Domino’s is betting on it for the long run
52 week low/high
Aphria Shares Pop on Q1 Earnings0 Comments Shares of Aphria Inc. (TSX: APHA) (NYSE: APHA) are up over 22% on Tuesday after the cannabis producer posted a first-quarter profit of CAD 16.4 Million, its second straight quarter of profitable growth....
CannTrust Takes Steps Towards Full Regulatory Compliance0 Comments CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) on Monday announced its continued progress on taking all actions to bring the company back into full compliance and reinstatement...
Bed Bath and Beyond Names Mark Tritton as President and CEO0 Comments Shares of Bed Bath and Beyond, Inc. (NASDAQ: BBBY) soared as much as 23% in after-hours trading on Wednesday after the Company announced Mark Tritton will become its new...