Domino's Pizza Q1 Earnings Beat, Revenues Miss, U.S. Same Store Sales Down; Stock Drops

Domino's Pizza

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(RTTNews) - Domino's Pizza Inc. announced Monday higher earnings in its first quarter, above market estimates, amid revenue growth. Meanwhile, the largest pizza company in the world recorded weak income from operations and U.S. same store sales, and its top line missed the Street view.

In pre-market activity on the Nasdaq, Domino's Pizza shares were losing around 2.6 percent to trade at $474.90.

Russell Weiner, Domino's Chief Executive Officer, said, "Domino's Q1 results demonstrate that our Hungry for MORE strategy continues to drive market share growth in QSR Pizza across both our US and international businesses. Sustained market share growth reflects a company's ability to control what is under its control, a key to long term success. In the face of a challenging global macroeconomic environment, our Hungry for MORE strategic pillars are working together to drive MORE sales, MORE stores and MORE profits, annually."

On April 23, the Company's Board of Directors declared a $1.74 per share quarterly dividend for shareholders of record as of June 13, to be paid on June 30.

As of March 23, the company had a total remaining authorized amount for share repurchases of $764.3 million.

In the first quarter, net income climbed 18.9 percent to $149.65 million from $125.82 million last year. Earnings per share were $4.33, up 20.9 percent from prior year's $3.58.

Analysts on average had expected the company to earn $4.07 per share. Analysts' estimates typically exclude special items. Income from operations, meanwhile, dropped 0.2 percent to $210.1 million from $210.4 million a year ago.

U.S. Company-owned store gross margin decreased 1.5 percentage points in the first quarter to 16 percent, primarily due to the increase in the Company's food basket pricing to stores, as well as lower sales leverage.

The company's revenue for the period rose 2.6 percent to $1.112 billion from $1.084 billion last year. The Street was looking for revenues of $1.12 billion. Total Global retail sales increased to $4.46 billion from last year's $4.36 billion. Global retail sales growth, excluding foreign currency impact, was 4.7 percent.

U.S. stores sales were $2.24 billion, higher than last year's $2.21 billion. International stores sales also grew to $2.22 billion from $2.15 billion a year ago.

U.S. same store sales declined 0.5 percent on top of a 5.6 percent rise last year, with 2.9 percent drop in U.S. Company-owned stores and 0.4 percent decline in U.S. franchise stores. International stores same store sales grew 3.7 percent, compared to 0.9 percent growth a year ago. For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com. https://www.rttnews.com/list/earnings.aspx