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Domino's Eases After Revenue Lags Analyst Forecasts

Domino's Pizza first-quarter revenue registered $983.7 million, up 13%. Analysts predicted $985 million. The stock is a bit lower.
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Domino's Pizza  (DPZ) - Get Domino's Pizza Inc Report shares eased Thursday after the chain's first-quarter revenue rose 13% but lagged analyst expectations.

Revenue registered $983.7 million in the quarter, up from $873.1 million a year earlier. The FactSet analyst consensus called for $985 million in the latest quarter.

Domino’s posted profit of $117.8 million, or $3 a share, down from $121.6 million, or $3.07, in the year-earlier quarter. Analysts expected earnings per share of $2.94 in the latest quarter.

U.S. same-store sales gained 13.4%, beating analysts’ estimate of 9.7%. And international same-store sales climbed 11.8%, besting predictions of 6%.

Domino’s has benefited as consumers binged on pizza and other takeout foods during the pandemic. Now, investors are optimistic about the distribution of vaccines, societal reopening and economic recovery. 

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"It was a strong first quarter for the Domino's brand, with balanced growth across all areas of our global business," Chief Executive Ritch Allison said in a statement.

The company’s stock recently traded at $396.24, down 1.9%. It has jumped 9% in the past month.

Domino’s also missed revenue estimates in the fourth quarter. Revenue climbed 18% to $1.36 billion, lagging the FactSet analyst consensus of $.1.39 billion.

EPS climbed to $3.46 from $3.16 in the year-earlier period but trailed the analyst prediction of $3.94.

In other fast food news this month, various media reported that McDonald's MCD plans to close hundreds of its outlets in Walmart  (WMT) - Get Walmart Inc. Report stores by the end of summer.

At that point, McDonald’s will have about 150 locations within Walmart's U.S. stores. That's down from 500 at the start of the year and from an overall peak of about 1,000, The Wall Street Journal reported.