Domino’s pizza After quarterly US same-store sales of the pizza chain turned negative for the first time since 2011, shares fell about 1% in Thursday morning trading.
The pandemic caused a surge in demand for Domino’s Pizza in the domestic market, but as consumers were vaccinated and deregulated, investors began to worry about pizza fatigue. We faced a tough comparison last quarter, Same-store sales in the US remained up 3.5%.
The company’s third quarter seems to be a turning point. Same-store sales in the US fell 1.9%, but indicators increased 15.6% over the two years. StreetAccount expected the company to report 1.8% growth in same-store sales in the United States.
Due to lower US demand, the pizza chain fell short of Wall Street’s earnings forecast. Analysts surveyed by Refinitiv predicted net sales of $ 1.04 billion, while Domino’s quarterly sales were $ 998 million.
Outside the United States, the company’s business is much better. International same-store sales increased 8.8% in the quarter, up 15% on a two-year basis.
Domino generated $ 3.24 per share during the quarter, surpassing the $ 3.11 per share forecast by analysts surveyed by Refinitiv.
In pre-market trading on Thursday, Domino’s share price fell by more than 5% at one point, but rose 20% this year to a market capitalization of $ 17 billion.
Domino’s Pizza inventories decline after U.S. same-store sales turn negative
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