![]() ![]() That provides access to Uber technology for roughly ⅔s of Domino’s global business. The company doesn’t give formal guidance but commented on the effect it was continuing to address US comp store growth through operational improvement and staffing while remaining focused on the International market.Īmong the developments that will impact growth over the next few quarters and years is the deal with Uber (NYSE: UBER). The GAAP $3.08 in EPS is up 9.2% compared to last year, beating the consensus by $0.01 despite the top-line weakness and outpacing retail revenue growth. The company widened the operating margin and net income margins by mid-to-high single digits and beat the consensus on the bottom line. The margin news is the best part of the report. Store count increased by 197 net or about 5.8% YOY to underpin systemwide sales growth. On a retail basis, global sales are up 5.8% on an FXN basis, 4.5% reported, with US comps up 0.1% and International 3.6%. The company lowered its market basket pricing to franchisees by 2.4% but could sustain margin improvement despite the reduction. The decline is due in large part to the comps but also to declining volume and pricing adjustments. The move appears to be a knee-jerk reaction to the headline, which has revenue down 3.8% compared to last year and 500 basis points weaker than expected. Domino’s Pizza Has Mixed Quarter, Shares Wobbleĭomino’s Pizza had a mixed quarter, and the news sent shares lower immediately after the release. Assuming the company can sustain earning growth, the stock price should follow earnings higher. The share price is up about 40% from 2019’s highs, consistent with the 40% increase in EPS over the same time. ![]()
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