Fast food giant Domino’s Pizza reported results for the second quarter of the fiscal year. The company beat the Street on some metrics, but fell short on others. At a time when competition in the food order and delivery market is high and getting higher, this was enough to make some investors nervous. As a result, the company’s share price traded down in the aftermath.
Investors penalised Domino’s for a mixed quarter, leaving the share price mostly flat against the start of the year
Source: Yahoo Finance
Domino’s managed to exceed analysts’ expectations when it came to earnings, returning $2.19 per share. Consensus estimates were for earnings of $2.02 per share. However, the company’s revenue came in at $811.6 million for the three-month period, failing to meet estimates of $836.59 million. When it came to same store sales, Domino’s saw growth of 3% in the US (analysts had hoped for 4.6%) and 2.4% internationally (analysts had hoped for 2.6%). All of these figures are reported on a year on year basis.
In a statement, the company’s CEO, Ritch Allison, sought to highlight the company’s trajectory and goals, noting that all the metrics were still heading in the right direction. He added: “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. 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.”
Disclosure
Dominion holds Domino’s Pizza in its Global Trends Managed Fund.
Author: Theo Leworthy
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