Finance Update

Domino’s sales growth, profit disappoint in fourth quarter

Domino’s Pizza Slumps After Missing Q4 Earnings & Revenue Estimates

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Warrior Trading News: Domino’s Pizza posted disappointing financial results for its fiscal fourth-quarter ended December 30, 2018 before markets opened on Thursday. The Michigan-based fast-food company missed on both top and bottom lines, sending its shares down 8.7% in premarket trade.

Comparable store sales also fell short of the estimates of Wall Street analysts. Domino’s Pizza opened a net 560 stores during the quarter, with a net 125 new locations in the United States.

DPZ Earnings & Outlook

Domino’s Pizza posted fiscal fourth-quarter net income of $111.6 million, or $2.62 per share, compared with $93.3 million, or $2.09 per share in the prior-year period. The pizza chain said the increase in earnings was due to a lower tax rate stemming from the 2017 tax reform legislation. Earnings, adjusted for one-time costs and gains, came to $2.62 per share.

Revenue was $1.08 billion, up 21% from $891.5 million in the same period last year. On average, analysts surveyed by Refinitiv were expecting adjusted earnings of $2.69 per share on revenue of $1.10 billion.

U.S. comparable store were up 5.6% while analysts had called for 6.3% growth. International comparable store sales grew 2.4%, missing market expectations of 4.2% growth.

The company said that it is still expecting international retail sales growth to be in the range of 8% to 12% and U.S. comparable store sales growth of between 3% to 6% for the next three to five years.

Domino’s Pizza CEO Comments

“I am pleased with our fourth quarter, which capped a very strong 2018 for Domino’s,” said Ritch Allison, Domino’s Chief Executive Officer. “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.”

Domino’s Pizza Inc Profile

Domino’s Pizza, Inc. is a pizza delivery company, which operates a network of company-owned and franchise-owned stores in the U.S. and international markets. The company operates though the following segments: Domestic Stores, Supply Chain and International Franchise.

The Domestic Stores segment consists of its domestic franchise operations, which oversees a network of franchise stores located in the contiguous U.S. and domestic company-owned store operations, which operates a network of company-owned stores located in the contiguous U.S.

The Supply Chain segment operates regional dough manufacturing and food supply chain centers, thin crust manufacturing center, supply chain center providing equipment and supplies to certain of its domestic and international stores and vegetable processing chain center.

The International Franchise segment comprises of its network of international franchise stores in international markets. Domino’s Pizza was founded by James Monaghan and Thomas Stephen Monaghan in 1960 and is headquartered in Ann Arbor, MI. – CNN Money

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