Domino’s Pizza earnings miss as U.S. same-store sales growth slows, pizza chain’s shares fall

Domino’s Pizza on Thursday reported quarterly earnings missed estimates as pandemic costs weighed on profits and U.S. same-store sales growth slowed.

The pizza chain also released a new outlook for the next two to three years.

Shares of the company fell about 7% in premarket trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: $3.46, adjusted, vs. $3.89 expected
• Revenue: $1.36 billion vs. $1.39 billion expected

The pizza chain reported fiscal fourth-quarter net income of $151.9 million, or $3.85 per share, up from $129.3 million, or $3.12 per share, a year earlier. Performance-based expenses and costs related the coronavirus pandemic, including enhanced pay and bonuses for restaurant workers, weighed on profits.

Excluding items, Domino’s earned $3.46 per share, missing the $3.89 per share expected by analysts surveyed by Refinitiv.

Net sales rose 17.9% to $1.36 billion, falling short of expectations of $1.39 billion. U.S. same-store sales increased by 11.2%, down from third quarter’s 17.5% same-store sales growth. International same-store sales climbed by 7.3%.

The company’s new two- to three-year outlook projects net unit growth of 6% to 8% and global retail sales growth of 6% to 10%, excluding foreign currency.

Read the full report here.