Domino’s Pizza Reports Disappointing Results, Stock Drops 5%
Domino’s Pizza (DPZ) saw its stock decline by 5% in premarket trading due to disappointing financial results for the first quarter, which fell short of market expectations across several key metrics.
In terms of same-store sales, the US performance revealed a growth of only 0.9%, significantly lower than the anticipated 2.6%. Furthermore, international same-store sales experienced a minor decline of 0.4%, whereas analysts had projected a growth of 0.7%, according to consensus data from Bloomberg.
Revenue for the quarter increased by 3.5%, reaching $1.15 billion; however, this was still below the $1.16 billion that analysts had forecasted. Additionally, the adjusted earnings per share were reported at $4.13, which also fell short of the expected $4.26.
CEO Russell Weiner commented on the challenging macroeconomic and competitive landscape, stating that despite these headwinds, he believes Domino’s continues to outperform its rivals and is poised to capture significant market share by 2026.
The company noted that its supply chain revenue, derived from exclusive sales to franchise locations, rose by 2.6% year-on-year, a figure attributed to the increase in ingredient costs.
Domino’s continued its global expansion during the quarter, adding a total of 180 new locations—19 in the United States and 161 in international markets. Additionally, the company initiated a $1 billion share repurchase programme to enhance shareholder value.
Year-to-date, shares of Domino’s are down approximately 12%, indicating a challenging start to the year for the fast-food giant.
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