Domino's Pizza (DPZ) rises after crushing profit estimates

Domino's Pizza (NYSE: DPZ) reported better-than-expected profit figures for the third quarter, sending its shares 1.3% higher in early Thursday trade.

The pizza chain reported Q3 EPS of $4.18, crushing the analyst estimate of $3.31. Revenue of $1.03 billion, which represents a 3.9% year-on-year decrease, fell short of the estimated $1.05 billion.

The performance of domestic stores is mixed, with total domestic stores' comparable sales growth down by 0.6%, while analysts were looking for +0.1%. Domestic co-owned stores saw an increase of 2.9%, in line with the consensus.

Domestic franchise comparable sales fell 0.7%, a surprise given that the Street was looking for +0.2%. Internationally, comparable sales increased by 3.3%, better than the expected 2.8%.

"We continue to execute on our initiatives to drive sustainable growth in the U.S.," said Russell Weiner, Domino's Chief Executive Officer.

"Our 'Summer of Service' initiative and the hard work of our franchisees and team members have brought delivery times back to pre-pandemic levels. Domino's Rewards is engaging more customers, and our integration with Uber's marketplace is on track. We are ready and excited to deliver the incremental orders both programs will bring in 2024 and beyond."

Looking ahead, the company expects its global net store growth in 2023 to be in line with or slightly below the low end of its 5% to 7% two- to three-year outlook.

Additionally, global retail sales growth for 2023, excluding foreign currency impact, is anticipated to trend modestly below the mid-point of its 4% to 8% two- to three-year outlook.

By Senad Karaahmetovic

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