Domino's Pizza ends earnings call
Domino's Pizza (NYSE: DPZ) concluded its second-quarter earnings call with a mix of positive and negative results. While the pizza chain delivered strong top-line growth, earnings came in lower than expected. The company reported a 3.4% rise in same-store sales in the U.S. for the quarter ended June 15, surpassing analysts' average estimate of a 2.21% rise [2]. This marks Domino's first beat in five quarters, driven by new menu items and promotions, which attracted value-conscious consumers amid persisting macroeconomic uncertainties [2].
Domino's also experienced a 2.4% growth in international same-store sales, ahead of the estimate of 1.71% growth. Quarterly revenue rose 4.3% to $1.15 billion, in line with estimates. However, the company posted quarterly earnings per share of $3.81, compared to the estimate of $3.95. Price hikes on ingredient packs supplied to outlets reduced the gross margin for its U.S. company-owned stores by 2% [2].
Shares of Domino's Pizza were up nearly 5% in premarket trading following the announcement [2]. The company's online sales grew, with discounts and the success of its partnership with DoorDash contributing to a doubling of its share of sales made through third-party delivery channels to roughly 5% [2].
Domino's CEO Russell Weiner highlighted the company's strong performance in the U.S., noting that both delivery and carry out grew, driving meaningful market share gains [2]. The company's efforts to introduce new items and attract value-conscious consumers helped offset the impact from U.S. President Donald Trump’s fluctuating tariff policies and the resulting trade tensions [2].
In conclusion, while Domino's Pizza's earnings missed estimates, the company's strong top-line growth and market share gains suggest a resilient business model in the face of macroeconomic uncertainties.
References:
[1] https://www.barrons.com/articles/dominos-pizza-earnings-stock-price-3aa7e6d6
[2] https://finance.yahoo.com/news/dominos-beats-quarterly-sales-estimate-101136716.html
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