ANN ARBOR, Mich. – Mixed results for the third quarter weighed on shares of Domino’s Pizza Inc. The company reported growth in same-store sales and revenue but missed Wall Street expectations.
For the third quarter ended Sept. 9, 2018, Domino’s reported domestic same-store sales growth of 6.3 percent, compared with 8.4 percent reported in the year-ago period. Analysts’ expected same-store sales growth of at least 6.5 percent.
The company’s International Division reported same-store sales growth of 3.3 percent during the quarter, compared with 5.1 percent reported in the third quarter of 2017.
“I continue to be proud of our great franchisees and operators around the world. In particular, our US business once again executed at extremely high levels in the third quarter,” said Ritch Allison, Domino’s CEO. “Our global business, driven by strong retail sales growth and franchisee economics that outperformed the industry, continued its strong momentum.”
Revenues for the third quarter increased 22.1 percent, short of analysts’ expectations of 23 percent growth. The company reported revenues of $785,965,000, compared with revenues of $643,642,000 reported in the third quarter of 2017.
Net income for the third quarter beat expectations. Domino’s reported earnings of $84,095,000, or $1.95 per diluted share, compared with $56,368,000, or $1.18 per diluted share in the year-ago quarter. Tax cuts, higher global royalty revenues, higher supply chain volumes and the sale of 12 company owned stores contributed to results.