Domino's Pizza Q3 revenue slightly beats estimates on net store growth
Overview
U.S. 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
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 U.S. 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:
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" and the breakdown of recommendations is 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.)