An worker locations a cooked pizza right into a supply field inside a Domino’s Pizza Group Plc retailer.
Jason Alden | Bloomberg | Getty Photos
Domino’s Pizza on Thursday reported combined quarterly outcomes because the pizza chain struggled with greater prices and an ongoing scarcity of supply drivers.
The Ann Arbor, Michigan-based firm additionally mentioned it is anticipating meals prices to maintain rising and overseas forex trade charges to tug down its worldwide income greater than beforehand forecast.
Shares of Domino’s have been down virtually 3% at $400.10 in pre-market buying and selling.
This is what the corporate reported in contrast with what Wall Avenue was anticipating, based mostly on a survey of analysts by Refinitiv:
- Earnings per share: $2.82 vs. $2.91 anticipated
- Income: $1.07 billion vs. $1.05 billion anticipated
Web revenue within the three-month interval ended June 19 was $102.5 million, or $2.82 per share, down from $116.6 million, or $3.06 per share, a 12 months earlier.
“We continued to navigate a troublesome labor market, particularly for supply drivers, along with inflationary pressures mixed with COVID and stimulus-fueled gross sales comps from the prior two years within the U.S.,” CEO Russell Weiner mentioned in a press release.
Web gross sales rose 3.2% to $1.07 billion. Domino’s largely attributed the rise in gross sales to the upper meals prices it is charging franchisees. This quarter, operators paid 15.2% greater than they did a 12 months in the past.
However the firm’s same-store gross sales fell at dwelling and overseas through the quarter. Within the U.S., same-store gross sales fell 2.9% because it confronted powerful comparisons within the year-ago interval, which was boosted by stimulus checks and folks ordering extra pizza at dwelling.
Wall Avenue was anticipating home same-store gross sales development of 5%, in accordance with StreetAccount estimates.
Worldwide same-store gross sales, excluding overseas forex adjustments, declined 2.2%. Domino’s mentioned a tax vacation in the UK drove gross sales greater a 12 months in the past, however the nation did not repeat it this 12 months. Analysts have been forecasting roughly flat same-store gross sales development for the chain’s worldwide unit.
The corporate opened 233 internet new shops this quarter, the overwhelming majority of them abroad.
For fiscal 2022, Domino’s is now anticipating meals basket costs to climb 13% to fifteen%, up from its prior forecast of 10% to 12%. The corporate additionally mentioned that overseas forex trade charges will weigh on its income by $22 million to $26 million, up from its earlier outlook of $12 million to $16 million.