Domino’s Pizza | $DPZ Stock | Shares Slump On Downbeat Sales

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Domino's Pizza

Domino’s Pizza, Inc. (NYSE: DPZ)

 

Shares of Domino’s Pizza lost $7 in regular trading on Thursday, after the restaurant chain missed Wall Street estimates in its second-quarter financial results.

U.S. same-store sales jumped 6.9% from last year’s second quarter, while the international segment recorded same-store sales jump of 4.0%.

The 2018 fiscal second-quarter was 29th consecutive quarter of positive domestic same-store revenue growth and the 98th consecutive quarter of positive global same-store revenue growth.

DPZ Earnings & Outlook

Domino's Pizza

The company reported a net income of $77.4 million, or $1.78 per share, compared to $65.7 million, or $1.32 per share reported in the second quarter of the previous year.

After stripping out special items and amortization expenses, earnings per share came in at $1.84. Total sales totaled to $779.4 million, from $628.6 million in the year-ago quarter.

Analysts had expected adjusted earnings per share of $1.75 on sales of $786.0 million, according to data compiled by Thompson Reuters.

International same-store revenue climbed by 4%, missing analyst average estimate for 5.4% growth. Domestic same-store revenue jumped by 6.9%, also missing analyst expectations for 7.3% growth.

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Domino’s Pizza CEO Comments

While announcing the results, Domino’s Chief Executive Officer, Ritch Allison made the following remarks: “I’m delighted to report that our franchisees and team members continued to deliver great results across the global Domino’s system.

Allison continued, “Global retail sales remain strong as we see our franchisees building new stores, growing same store sales and bringing customers back again and again. Our second quarter was highlighted by yet another innovation in food delivery with the launch of Domino’s HotSpots, of which there are now more than 200,000 across the United States. The energy, passion and operational execution of our franchisees and managers around the world inspire me as I begin my role as CEO.”

Domino’s Pizza, Inc. Company Profile

Domino’s Pizza, Inc. is a pizza company that offers its services in the US and internationally. The company’s segments of operation are as follows: Domestic Stores, Supply Chain, and International Franchise. It offers company-branded pizzas via its own stores and franchises.

The company mainly offers pizza products in various crust types and sizes. It also offers oven-baked bones chicken, sandwiches, desserts, pasta, soft drink products, and bread side items.

Its international markets vary toppings by culture and country, such as spicy cheese in India or squid toppings in Japan. The markets also feature regional specialty products, including cinnamon and banana dessert pizza in Brazil.

Domino’s Pizza operates regional food supply and dough manufacturing chain centers, supply chain center providing supplies and equipment to certain of its international and domestic vegetable processing chain centers and stores, and thin crust manufacturing centers.

The company operated approximately 15,000 stores in approximately 85 markets as of June 18, 2018. Its competitors include and Little Caesars Pizza, Pizza Hut, and Papa John’s.

Domino’s Pizza, Inc. was founded in 1960 by Thomas Stephen Monaghan and James Monaghan. Its headquarters are based in in Ann Arbor, Michigan. –Reuters

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