Domino’s beats expectations at home and overall, but lags overseas
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Domino’s beats expectations at home and overall, but lags overseas

Domino’s Pizza reported earnings this week that show a 33% rise in profit during its second quarter due to rising demand at home. However, sales overseas were a weak spot for the brand, which has historically performed well across multiple regions. According to J. Patrick Doyle, Domino’s CEO, weakness in the UK market was a prime driver of the brand’s poor showing internationally.

While the company continued to see a rise in sales outside of America, it came in at far less than analysts had hoped for: 2.6%, year-over-year, against expectations of 5.1%. This is also far less than the 7.1% increase the company reported internationally over the same period last year. Thankfully, the company’s domestic sales made up for it.

In its domestic market, Domino’s managed to deliver a 9.5% rise in sales against the same period last year. This easily beat the Street’s prediction of 7.9%, and helped to generate a significant rise in profit. Earnings per share came in at $1.32 on a net income of $65.7 million for the quarter. This beat analysts’ expectations of $1.22 per share, and it was considerably higher than last year’s $0.98 on a net income of $49.3 million. Revenues rose 15% to $628.6 million, overshooting expectations of $613.4 million.

Turning back to the company’s poor performance overseas, Doyle said that the numbers reported “weren’t exactly the type of results we’ve all come to expect within this high-performing business segment.” He said that the company was working on a number of remedies for the situation, including attempting to get more Brits to order pizza online.

Disclosure

Dominion holds Domino’s Pizza in its Global Trends Managed Fund.


If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.