Domino’s Pizza Shares Fell After Disappointing Fourth-Quarter Earnings
Mar 1, 2022 By MarketDepth
Domino’s Pizza (NYSE: DPZ), shares fell as much as 8% during premarket trading Tuesday after posting disappointing fourth-quarter earnings results. Furthermore, the pizza chain announced that CEO Ritch Allison is set to retire on May 1, with Chief Operating Officer and U.S. President Russell Weiner in line to fill the position.
Below Analysts Expectations
The multinational pizza restaurant chain reported earnings of USD4.25 per share, compared to the expected USD4.28 a share. Revenue amounted to USD1.34 Billion, lower than analysts anticipated USD1.38 Billion. Furthermore, the company disclosed fourth-quarter net income of USD155.7 Million, up from the previous year’s USD151.9 Million.
“Throughout 2021, the strength of our franchisees and our excellent unit economics continued to deliver outstanding store and retail sales growth for the Domino’s brand. When we compare our 2021 results back to pre-pandemic 2019, the Domino’s brand grew by nearly $3.5 billion in global retail sales over the last two years. Looking forward, we remain focused on leading with innovation and leveraging our global scale to drive outstanding returns for our franchisees and shareholders.”Ritch Allison, Domino’s Chief Executive Officer
According to StreetAccount, analysts had forecasted U.S. same-store sales growth of 2.9%. However, same-store sales increased just 1% within the quarter amid a poor performance by its company-owned restaurants.
Furthermore, the chain’s performance outside the U.S. was also a let down. International same-store sales were up 1.8% during the quarter, well below StreetAccount estimates of 6.6%.