Domino’s Pizza Dived after Reporting U.S. Same-store Sales Decline in Q3
October 12, 2023
Domino's Pizza (DPZ) fell 0.72% in late premarket today, October 12, after the company undershoot expectations in its Q3 revenue and same-store sales.
DPZ’s global retail sales increased 4.9% over the reported period. Even adjusting for the Russian market closure, global retail sales rose 5.1% in the quarter. However, U.S. same-store sales fell 0.6% in Q3, while international same-store sales increased 3.3%. Notably, the company's store basket prices declined 1.7% in Q3 2023 compared to Q3 2022.
Net income for the quarter non-organically increased 46.9% YoY – primarily due to an unrealized pre-tax gain of $28.2 million related to the revaluation of the company's interest in DPC Dash. Earnings per share stood at $4.18, compared with consensus estimates of $3.29 and $2.79 a year ago.
In terms of store growth, DPZ opened a total of 218 new stores in Q3 and closed a total of 226 stores. The pizza chain operator said the decline in global and international net store numbers reflected the closing of the remaining 143 Domino's stores in Russia. Interestingly, its competitor, Papa John's International (PZZA) decided to continue its operations in Russia after becoming a fully domestically owned subsidiary.
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