Domino’s (DPZ) stock fell more than 3% premarket after the pizza chain posted fourth quarter results that mostly missed Wall Street’s expectations.
Before the market open Monday, Domino’s reported that revenue increased 2.9% year over year to $1.44 billion in the fourth quarter, driven higher by a 4.4% increase in revenue from higher order volumes and food and cardboard prices sold to stores. Same-store sales increased 0.4% compared to the 1.72% jump the Street predicted. Adjusted earnings came in lower too, at $4.89 per share compared to an estimate of $4.93.
Domino’s also missed expectations on full-year revenue and earnings but beat slightly on international same-store sales growth, which increased 1.6%. 2024 marked the 31st consecutive year of same-store sales growth.
In the release, Domino’s CEO Russell Weiner said its value strategy, called “Hungry for MORE,” drove “strong order count growth, even in the face of a challenging global macroeconomic environment.”
In the US in particular, he said its “pillar of Renowned Value” helped to gain market share among its quick-service restaurant pizza competitors. For the quarter, US sales ticked higher, up 0.4%, but that wasn’t as high as the 1.72% gain the Street wanted. Weiner said he remains “confident” that Domino’s will “continue to win and grow market share.”
Investors may have already anticipated these poor results.
After battling bad weather conditions in the fourth quarter, Citi analyst Jon Tower wrote in a client note prior to earnings that “shares appear to have already moved on from what is likely a soft fourth quarter and start to the first quarter.” Investors have been eyeing growth drivers, such as menu innovation and third-party delivery partners, that could turn the tide in 2025.
Shares of Domino’s are up 10% year to date versus a 2% gain for the S&P 500 (^GSPC).
Here’s what Domino’s reported in the fourth quarter, compared to Wall Street consensus estimates compiled by Bloomberg:
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Adjusted earnings per share: $4.89, versus $4.93
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Revenue: $1.44 billion, versus $1.48 billion
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US same-store sales growth: +0.4%, versus +1.72%
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Company-owned: -0.7%, versus +1.79%
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Franchise: +0.5%, versus +1.74%
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International same-store sales growth: +2.7%, versus +1.63%
Here’s Domino’s reported in its fiscal 2024 results, compared to Bloomberg consensus estimates:
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Adjusted earnings per share: $16.69, versus $16.70
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Revenue: $4.71 billion, versus $4.74 billion
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US same-store sales growth: +3.2%, versus +3.63%
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Company-owned: +3.5%, versus +4.3%
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Franchise: +3.2%, versus +3.63%
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International same-store sales growth: +1.6%, versus +1.37%
