Mixed results send Domino’s down
Fast food giant Domino’s Pizza reported results for the second quarter of the fiscal year. The company beat the Street on some metrics, but fell short on others. At a time when competition in the food order and delivery market is high and getting higher, this was enough to make some investors nervous. As a result, the company’s share price traded down in the aftermath.
Investors penalised Domino’s for a mixed quarter, leaving the share price mostly flat against the start of the year
Source: Yahoo Finance
Domino’s managed to exceed analysts’ expectations when it came to earnings, returning $2.19 per share. Consensus estimates were for earnings of $2.02 per share. However, the company’s revenue came in at $811.6 million for the three-month period, failing to meet estimates of $836.59 million. When it came to same store sales, Domino’s saw growth of 3% in the US (analysts had hoped for 4.6%) and 2.4% internationally (analysts had hoped for 2.6%). All of these figures are reported on a year on year basis.
In a statement, the company’s CEO, Ritch Allison, sought to highlight the company’s trajectory and goals, noting that all the metrics were still heading in the right direction. He added: “It was a good second quarter, particularly for global unit growth, as we continue to seek balanced retail sales growth through the blend of same store sales and store growth. As a work-in-progress brand, we are constantly striving to improve in needed areas, execute our long-term strategy and build toward Dominant #1 – a goal I continue to feel we are built to achieve.”
Dominion holds Domino’s Pizza in its Global Trends Managed Fund.
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