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Domino's Shares Lower as Q3 Revenue Lags Estimates

Domino's Pizza shares fell on Thursday after the pizza chain's third-quarter revenue and U.S. same-store sales lagged expectations.
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Domino's Pizza  (DPZ) - Get Domino's Pizza, Inc. Report shares fell on Thursday after the titanic pizza chain reported third-quarter revenue and U.S. same-store sales that lagged expectations.

Profit at the Ann Arbor, Mich., chain came in at $120.4 million, or $3.24 a share, up from $99.1 million, or $2.49 a share, in the year-earlier period. Analysts surveyed by FactSet estimated $3.11 a share for the latest quarter.

Revenue registered $998 million, up 3% from $967.7 million a year earlier. The FactSet analyst consensus called for $1.03 billion in the latest quarter.

Domino’s stock recently traded at $474.31, down 0.4%. The stock has jumped 21% during the past six months amid demand during the pandemic. It has slipped 7% in the past month amid concern about slowing economic growth and rising inflation.

The company said U.S. same-store sales dipped 1.9% in the latest quarter against an analyst forecast of an ascent of 1.7%. International comparable sales gained 8.8%, compared with the estimate of a climb of 8%.

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“On a two-year basis," Chief Executive Ritch Allison said in a statement, "our U.S. same-store sales were up 15.6% over the 2019 baseline, with our international same store sales [rose] 15%.”

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TheStreet.com Founder Jim Cramer discussed his continued bullishness for Domino’s last week.

Morningstar analyst Sean Dunlop put fair value for the stock at $410 prior to the earnings report, and he assigned the company a wide moat.

Dunlop cites Domino's "historical investments in 'anyware' ordering, a best-in-class e-commerce interface, and a mix that skewed toward delivery (55%), [even] before the pandemic."