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Domino's Pizza Falls After Posting Mixed Q2 Earnings, Weak Sales

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Domino's Pizza Falls After Posting Mixed Q2 Earnings, Weak Sales

Shares of Domino's Pizza, Inc. (NYSE: DPZ) fell sharply Tuesday morning after posting mixed second-quarter results.

What Happened

Domino's said it earned $2.19 per share in the second quarter on revenue of $811.65 million. By comparison, Street analysts expected the chain to earn $2.02 per share on revenue of $836.92 million.

Same-store sales during the quarter in the U.S. region were higher by 3%, which was short of the 4.6% expected. Similarly, international same-store sales were higher by 2.4%, shy of the 2.6% expected.

Net income for the quarter rose from $77.4 million in the same quarter last year to $92.4 million. The company attributed its higher profit to increased royalty revenues from franchised stores and higher supply chain volumes.

Domino's purchased and retired 12,295 shares of its stock and the company ended the second quarter with authorization to purchase another $147.3 million worth of shares.

Why It's Important

Despite falling short of expectations, the second quarter represents the 102nd consecutive quarter of international same-store sales growth and the 33rd consecutive quarter of U.S. growth, the company said.

"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," Ritch Allison, Domino's CEO.

The stock traded lower by 7.7% to $249 per share in Tuesday's pre-market session.

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Posted-In: Pizza Ritch AllisonEarnings News Retail Sales Restaurants General Best of Benzinga

 

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