Domino's Pizza Q3 same-store sales miss estimates

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:

Key Details

*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.)