Domino's Q1 EPS Misses by $0.15, US Sales Up 0.9%, Shares Tumble 5%
Domino's Pizza reported Q1 adjusted EPS of $4.13 and revenue of $1.151 billion, missing consensus expectations, while US same-store sales rose just 0.9% and international comps fell 0.4%. The chain added 180 net stores and unveiled a $1 billion share repurchase program, yet shares fell over 5% in premarket trading.
1. Q1 Financial Results
Domino's Pizza delivered adjusted EPS of $4.13 on revenue of $1.151 billion in the first quarter, below analyst forecasts. US same-store sales rose 0.9% versus a 2.6% target, while international comps declined 0.4% against a projected 0.7% gain.
2. Operating Challenges
Management cited cost-conscious consumers, persistent inflation, a weak labor market and higher transportation expenses as key headwinds weighing on sales momentum and margin growth.
3. Store Expansion and Supply Chain Growth
The pizza chain expanded its footprint with 180 net new stores during the quarter, including 19 in the US and 161 internationally. Supply chain revenue, generated from franchise goods sales, grew 2.6% year over year due to ingredient cost pass-through.
4. Share Repurchase and Stock Reaction
A $1 billion share repurchase program was announced to support shareholder returns. Shares tumbled 5.8% in premarket trading, touching near 52-week lows, and the stock is down about 12% year to date.