– Domino’s Crashes Most Since Late 2008 After “Temporarily Suspending” Store Growth Guidance Metric:
Shares of Domino’s Pizza in premarket trading in New York crashed the most since late 2008 following a surprise announcement in an earnings report this morning about the company cutting its 2024 international store-growth target due to “challenges” faced by franchisee Domino’s Pizza Enterprises. Also, the company “temporarily suspended” its long-term guidance metric of plus 1,000 global net stores annually.
Domino’s US same-store sales increased by 4.8% in the second quarter, missing the 4.92% average estimate tracked by Bloomberg. Internationally, comparable sales surpassed estimates, rising by 2.1%
Here’s a snapshot of the second quarter results (courtesy of Bloomberg):
- Revenue $1.10 billion, +7.1% y/y, estimate $1.1 billion (Bloomberg Consensus)
- Total domestic stores comp sales growth +4.8%, estimate +4.92%
- Domestic franchise comparable sales growth +4.8%, estimate +4.87%
- Domestic co-owned comparable sales growth +4.5%, estimate +6.08%
- International comparable sales +2.1%, estimate +0.89%
- Adjusted EPS $4.03, estimate $3.69
- Operating income $196.1 million, estimate $203.4 million
- Restaurant margin 17.6%, estimate 18.5%
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