Domino’s stock falls after earnings and revenue miss

Domino’s Pizza on Tuesday reported quarterly earnings and revenue that missed analysts’ expectations.

Shares of the company fell 5% in premarket trading.

“It was a good quarter for Domino’s, as we continue to lean on our fundamental strength against a unique competitive environment,” CEO Ritch Allison said in a statement.

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

• Earnings per share: $2.05 vs. $2.07 expected
• Revenue: $820.8 million vs. $823.9 million expected

The pizza chain reported fiscal third-quarter net income of $86.4 million, or $2.05 per share, up from $84.1 million, or $1.95 per share, a year earlier. Analysts surveyed by Refinitiv were expecting Domino’s to earn $2.07 per share.

Net sales rose 5.8% to $820.8 million, falling short of expectations of $823.9 million.

Both Domino’s international and domestic businesses missed estimates for same-store sales growth. The pizza chain, which is the largest in the world by sales, reported international same-store sales growth of 1.7% during the quarter. Analysts were forecasting at least 2.9% same-store sales growth in its stores outside of the U.S. 

The company reported that sales at U.S. stores open at least a year grew by 2.4%, but Wall Street was expecting same-store sales growth of 2.84%.