Domino’s Pizza’s share fell more than 3% in pre-market transactions after the pizza chain’s third-quarter earnings were lower than expected and same-store sales in the United States turned negative.
The pandemic caused a surge in demand for Domino’s Pizza in the domestic market, but as consumers were vaccinated and deregulated, investors began to worry about pizza fatigue. Despite faced tough comparisons last quarter, same-store sales in the US were still up 3.5%.
The company’s third quarter seems to be a turning point. Same-store sales in the US fell 1.9%, but indicators increased 15.6% over the two years. StreetAccount estimates that the company will increase same-store sales in the United States by 1.8%.
Due to lower US demand, the pizza chain fell short of Wall Street’s earnings forecast. Analysts surveyed by Refinitiv expected net sales of $ 1.04 billion, while Domino reported quarterly sales of $ 998 million.
Outside the United States, the company’s business is much better. International same-store sales increased 8.8% in the quarter, up 15% on a two-year basis.
Domino generated $ 3.24 per share during the quarter, surpassing the $ 3.11 per share forecast by analysts surveyed by Refinitiv.
Domino shares fell more than 5% at some point on Thursday, but rose 19% this year to a market value of $ 17 billion.
Read Domino’s press release.
Domino’s Pizza inventories fall 3% after U.S. same-store sales turn negative
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