Domino's Pizza Q3 same-store sales miss estimates
DPZ•Domino's Pizza's third-quarter same-store sales growth missed analyst estimates, while revenue rose 3.4% to $1.19 billion and net income increased 9.2% to $152.2 million. The company repurchased $73.6 million in shares, and its stock fell about 3% in premarket trading.
1. Quarterly results
Domino's Pizza reported U.S. same-store sales growth of 0.3% in the third quarter, and U.S. and international same-store sales growth missed analyst estimates. Revenue rose 3.4% to $1.19 billion, slightly above the $1.18 billion estimate, while net income increased 9.2% to $152.2 million, beating the $144.72 million estimate. Earnings per share were $4.60. The company repurchased $73.6 million in shares during the quarter, and its shares fell about 3% in premarket trading.
2. Revenue drivers
The company said higher supply-chain revenue, driven by increased order volumes and a 2.2% rise in food-basket pricing, contributed to revenue growth. Higher U.S. and international franchise royalties and fees reflected net store growth. Supply-chain gross margin rose 0.9 percentage points, mainly due to procurement productivity. The company did not provide specific financial guidance for future quarters or the full year.
