Domino’s Pizza (DPZ) has released its third-quarter earnings report, which highlights strong international growth but slower sales in the U.S. market.
Earnings Beat Expectations
For the quarter that ended on September 10th, Domino’s earned $4.18 per share, surpassing analysts’ estimates of $3.31, and representing an increase from $2.79 in the previous year. It’s important to note that these figures include an unrealized pretax benefit related to Domino’s investment in DPC Dash, its exclusive franchise in China, Hong Kong, and Macau.
Revenue Decline
However, despite the impressive earnings performance, the company experienced a 3.9% decline in revenue compared to the previous year, amounting to $1.03 billion. This dip in revenue was primarily due to reduced sales at U.S. company-owned stores. Analysts had initially expected revenue to reach $1.05 billion. In addition, order volumes decreased from the previous year, with U.S. same-store sales declining by 0.6%.
Strong International Growth
On a positive note, international same-store sales showed a growth of 3.3% compared to the previous year, excluding the impact of currency fluctuations. This solid performance demonstrates the success of Domino’s international initiatives.
Focus on U.S. Expansion
CEO Russell Weiner stated, “We continue to execute on our initiatives to drive sustainable growth in the U.S.” While the U.S. market presented challenges in the second quarter as well, the company remains committed to its expansion efforts.
Stock Performance
Following the release of the earnings report, Domino’s stock experienced a decline of 1.6% in premarket trading, bringing it to $348.25.
Conclusion
Despite facing slower sales in their U.S. business, Domino’s Pizza reported impressive earnings and continued growth on an international scale. The company remains focused on its strategies for driving growth and expansion in the U.S. market.
