Domino’s Pizza Inc (NYSE: DPZ) announced its second-quarter ahead of the market open on Tuesday. The pizza delivery chain saw its net income grow 19% in the quarter, while global revenue was up 4.1% to $811.6 million but missed the $836.59 million that Wall Street analysts had forecast.
Shares of the Ann Arbor, Michigan-based company, which has been struggling to meet analysts’ expectations for both global and domestic revenue amid stiff competition in the fast-food space, dropped 7% in premarket trading hours.
Domino’s continues to face competition from food delivery apps such as GrubHub Inc (NYSE: GRUB), DoorDash, and UberEats, which have been offering attractive discounts and more food options.
The stock has risen more than 2% year-to-date and was down $15.97, or 5.92% to $254.00 as of 10:29 a.m. ET.
DPZ Earnings
Domino’s Pizza had net income of $92.4 million, or $2.19 per share in the second-quarter, an 19% increase from $77.4 million, or $1.78 per share in the same period last year. Analysts were expecting earnings of $2.02 per share in the quarter, according to data compiled by Refinitiv.
Revenue, the company said, was $811.6 million compared with $779.4 million reported in the earlier-year period. On average, analysts surveyed by Refinitiv had forecast revenue of $836.59 million in the three months ended June 16.
Domino’s Pizza attributed the revenue growth mainly to the company operating more stores in the past four quarters, as well as from growth in domestic and global same-store sales. The company added 200 new stores in the quarter, including 42 new stores in the U.S.
Domino’s Pizza posted same-store sales growth of 2.4% globally and 3% in the United States. Excluding currency fluctuations, global retail sales jumped 8.4% in the period.
Domino’s Pizza CEO Comments
“It was a good second quarter, particularly for global unit growth, as we continue to seek balanced retail sales growth through the blend of same store sales and store growth,” Domino’s Pizza Chief Executive Officer Ritch Allison said in a press release.
“As a work-in-progress brand, we are constantly striving to improve in needed areas, execute our long-term strategy and build toward Dominant #1 – a goal I continue to feel we are built to achieve,” Allison concluded.
Domino’s Pizza Inc Profile
Domino’s is a dominant player in the $84 billion global quick service pizza category with a nearly 15% market share. The company generates revenue through franchise royalties, company-owned stores, and sales from its 27 dough-manufacturing and supply-chain centers.
Of the 15,914 stores in 85 markets around the world as of fiscal 2018, 5,486 are operated by domestic franchisees, 10,038 by international franchisees, and 390 are company-owned. Domino’s posted $13.5 billion in systemwide retail sales in 2018. – Warrior Trading News
