Domino's Pizza (DPZ - Get Report) posted weaker-than-expected fourth-quarter earnings Thursday as comparable sales at its U.S.-owned stores disappointed investors amid increasing competition from rivals and delivery services.
Following the report, the pizza company's shares closed down 9.15% Thursday to $253.01.
Domino's said earnings for the three months ended in December came in at $2.62 per share, up 25% from the same period last year but shy of the Street consensus forecast of $2.69 per share. Group revenues, Domino's said, rose 13% to $1.08 billion and just missed the consensus forecast of $1.1 billion. U.S. company-owned same-store sales rose 3.6%, Domino's said, the slowest pace in four years and well below the consensus estimate of 6.6%.
"I am pleased with our fourth quarter, which capped a very strong 2018 for Domino's," said CEO Ritch Allison. "Our long-game approach, driven by fundamentals and the finest franchisee base in QSR across the globe, continues to pace the industry - and we are excited to execute our global strategy in 2019 and beyond."