Domino’s Pizza Falls on Soft Q3 Revenue
Domino’s Pizza (DPZ:US) saw its stock fall in early Thursday trade after the company reported weaker-than-expected revenue for the third quarter.
Net income for the quarter was $147.7 million, or $4.18 per share, up from $100.5 million, or $2.79 per share, in the same period the previous year. However, revenue fell to $1.027 billion from $1.069 billion in the prior year.
The consensus had expected earnings per share EPS of $3.31 and revenue of $1.050 billion.
"We continue to execute on our initiatives to drive sustainable growth in the U.S.," said Russell Weiner, Domino's Chief Executive Officer.
"Our 'Summer of Service' initiative and the hard work of our franchisees and team members have brought delivery times back to pre-pandemic levels. Domino's Rewards is engaging more customers, and our integration with Uber's marketplace is on track. We are ready and excited to deliver the incremental orders both programs will bring in 2024 and beyond."
The decline in revenue was attributed to lower supply chain revenue and reduced revenue from U.S. company-owned stores. U.S. same-store sales fell by 0.6%.
Looking ahead, Domino’s Pizza anticipates that its 2023 global net store growth will trend at or slightly below the low end of its 5% to 7% two- to three-year target. It also expects full-year global retail sales growth, excluding the impact of foreign currency, to be "modestly" below the mid-point of its 4% to 8%, two- to three-year outlook.
No Congress members traded DPZ shares this year. Representatives Tom Suozzi, Ro Khanna, Kathy Manning, and Diana Harshbarger were trading the stock last year.
DPZ shares were up 4.8% YTD through Wednesday’s close.
