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DPZ — Domino's Pizza News Story

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Domino's Pizza Q3 same-store sales miss estimates (updated)

UPDATE 1-Domino's Pizza Q3 same-store sales miss estimates

Updates to change headline, add quarterly same-store sales figures and shares in the overview section

Overview

  • Q3 US and international same-store sales growth miss analyst estimates

  • US pizza chain's Q3 revenue rose 3.4%, slightly beating analyst expectations

  • Q3 net income increased 9.2%, beating analyst estimates

  • Company repurchased $73.6 mln in shares during Q3

  • Shares of the company fell about 3% in premarket trading


Outlook

  • Company did not provide specific financial guidance for future quarters or full-year results in the release


Result Drivers

  • SUPPLY CHAIN REVENUES - Co said higher supply chain revenues, driven by increased order volumes and a 2.2% rise in food basket pricing, contributed to revenue growth

  • FRANCHISE ROYALTIES - Co said higher US and international franchise royalties and fees revenues were driven by net store growth

  • PROCUREMENT PRODUCTIVITY - Co said supply chain gross margin rose 0.9 percentage points in Q3, mainly due to procurement productivity


Company press release: ID:nPn4hjpWXa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$1.19 bln

$1.18 bln (22 Analysts)

Q3 EPS

$4.60

Q3 Net Income

Beat

$152.20 mln

$144.72 mln (20 Analysts)

Q3 U.S. Same Store Sales Growth

0.30%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" with 15 "strong buy" or "buy", 16 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the restaurants & bars peer group is "buy"

  • Wall Street's median 12-month price target for Domino's Pizza, Inc. is $380.00, about 22.2% above its October 12 closing price of $310.90

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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