Domino's Pizza (DPZ) - Get Report beat Wall Street's first-quarter earnings expectations Thursday, but the No. 1 worldwide pizza chain based on retail sales withdrew its outlook due to uncertainty caused by the coronavirus pandemic shutdown.
Shares of the Ann Arbor, Mich., company at last check were off 1.6% to $377.50. They'd risen 5.1% in Wednesday trading.
The company said it was withdrawing its two- to three-year outlook for global retail-sales growth, U.S. same-store-sales growth, international same-store-sales growth and global net-unit growth due to the coronavirus outbreak.
Domino's reported net income of $121.6 million, or $3.07 a share, up from $92.7 million, or $2.20, in the year-earlier quarter. The latest figure beat the consensus estimate of $2.32 a share in a FactSet survey of analysts.
The profit growth was driven primarily by a lower effective tax rate, higher royalty revenue from U.S. and international franchised stores, and higher supply-chain volumes, Domino's said.
Revenue totaled $873.1 million, a 4.4% increase from the year-earlier total, and came in ahead of FactSet's consensus of $669 million.
The increase was due mainly to higher global store counts during the trailing four quarters as well as U.S. and international same-store sales growth, resulting in higher supply-chain and U.S. and international franchise revenue.
Comparable sales for Domino's U.S. stores rose 1.6% , short of FactSet's call for a 2.2% increase, while international sales growth of 1.5% matched expectations.
From March 23 to April 19, U.S. same-store sales increased 7.1% amid the covid-19 pandemic, while U.S. retail sales grew 10.7%.
"In a time of unprecedented change in our industry, ... Domino's is in a very strong financial position, both at the brand and franchisee levels," Chief Executive Ritch Allison said in a statement.