Dominoes in Denmark
Domino’s Pizza fell about 2% in morning trading after the pizza chain’s quarterly sales in the US turned negative for the first time since 2011.
The pandemic has spiked domestic demand for Domino pizza, but as consumers were vaccinated and relaxed restrictions imposed, investors began to worry about pizza fatigue. Last quarter, despite tough comparisons, same store sales in the US still grew 3.5%.
The company’s third quarter looks like a turning point. Same-store sales in the United States declined 1.9%, although the figure was up 15.6% in two years. StreetAccount estimates that the company will report a 1.8% increase in sales in similar U.S. stores.
Falling demand in the US has led the pizza chain to fall short of Wall Street’s expectations. Analysts surveyed by Refinitiv expected net sales of $ 1.04 billion, but Domino’s reported $ 998 million in quarterly revenue.
The company is doing much better outside the United States. International sales in the same stores grew 8.8% in the quarter, up 15% in two years.
Domino’s earned $ 3.24 per share during the quarter, more than the $ 3.11 per share expected by analysts surveyed by Refinitiv.
Although Domino shares dropped more than 5% at one point in premarket Thursday, they are up 20% this year, bringing their market value to $ 17 billion.