Domino's Pizza Shares Slide On Q1 Earnings Miss Due To Inflationary Pressure

  • Domino's Pizza Inc DPZ reported first-quarter FY22 sales growth of 2.8% year-on-year to $1.01 billion, missing the consensus of $1.03 billion.
  • Global retail sales increased 3.6%, excluding the negative impact of foreign currency. Without adjusting for the impact of foreign currency, global retail sales grew 0.3%.
  • Same-store sales in the U.S. fell 3.6%, while International same-store sales (excluding foreign currency impact) increased 1.2%.
  • Operating margin for the quarter compressed 310 basis points to 36.5%.
  • EPS of $2.50 missed the analyst consensus of $3.05.
  • The company held $165 million in cash and equivalents and had a total debt of $5.06 billion as of March 27, 2022.
  • Net cash provided by operating activities for the quarter was $78.8 million, with a free cash flow of $66.3 million.
  • Store count as of March 27, 2022, totaled 19,061.
  • "We faced a number of headwinds during the first quarter, from the Omicron surge to staffing shortages to unprecedented inflation, which pressured our results," said CEO Ritch Allison, who will be succeeded by Russell Weiner on May 1. 
  • Price Action: DPZ shares are trading lower by 4.80% at $355.00 in premarket on the last check Thursday.
  • Photo Via Wikimedia Commons

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