Domino’s in Denmark
Shares of Domino’s Pizza fell more than 3% in pre-market trading after the pizza chain’s third quarter revenue fell below estimates and its U.S. same-store sales turned negative.
The pandemic caused demand for Domino’s pizza to skyrocket in its domestic market, but as consumers were vaccinated and states relaxed restrictions, investors began to worry about pizza fatigue. In the last quarter, despite difficult comparisons, same-store sales in the United States still increased 3.5%.
The company’s third quarter appears to be the turning point. Comparable store sales in the United States fell 1.9%, although the measure increased 15.6% on a two-year basis. StreetAccount estimates predict the company would report same-store sales growth in the United States of 1.8%.
Falling demand from the United States has led the pizza chain to fall short of Wall Street revenue estimates. Analysts polled by Refinitiv expected net revenue of $ 1.04 billion, but Domino’s reported revenue of $ 998 million for the quarter.
Outside of the United States, the company’s business is doing much better. International same-store sales increased 8.8% in the quarter, up 15% over two years.
Domino’s gained $ 3.24 per share in the quarter, beating the $ 3.11 per share expected by analysts polled by Refinitiv.
Although Domino’s shares fell more than 5% at one point on Thursday, the stock has climbed 19% this year, taking its market value to $ 17 billion.
Read the Domino press release.