An employee moves pizza boxes prior to delivery at a Domino’s Pizza Inc. restaurant in Chantilly, Virginia.
Andrew Harrer | Bloomberg | Getty Images
Dominos pizza On Thursday, quarterly sales were reported to be up 17.9%, led by more U.S. customers ordering pizza delivery during the coronavirus pandemic.
However, earnings fell short of expectations, hurt by higher costs, and stocks fell more than 5% in premarket trading.
The company reported, relative to Wall Street expectations based on an analyst survey by Refinitiv:
- Earnings per share: $ 2.49 versus $ 2.79 expected
- Revenue: $ 968 million versus $ 953 million expected
The pizza chain reported net income of $ 99.1 million, or $ 2.49 per share, for the third quarter, compared to $ 86.4 million, or $ 2.05 per share, last year. Analysts polled by Refinitiv expected earnings of $ 2.79 per share.
While the pandemic increased sales, it also increased costs for the company. Higher wages for frontline workers and higher sick pay weighed on income. And higher sales also led to higher compensation depending on the performance.
Net sales rose 17.9% to $ 968 million, beating expectations of $ 953 million. US sales in the same store increased 17.5%. The company said sales in its home market were “positively impacted” by changes in customer behavior as a result of the pandemic. The international business saw sales growth of 6.2% in the same business.
Less than 300 Domino international locations are temporarily closed through October 5th. During the quarter, the company permanently closed 126 restaurants, mainly in India. Domino has added 83 new net locations.
In the second quarter, Domino borrowed $ 158 million under its floating notes due to the uncertainty created by the crisis. It has since paid back that debt.
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