© Reuters. Domino’s Pizza (DPZ) Misses Estimates but Shares Still Rally on Solid Same Store Sales
By Senad Karaahmetovic
Shares of Domino’s Pizza (NYSE:) are trading more than 5% higher today after the company reported Q3 results.
DPZ an adjusted EPS of $2.79 on revenue of $1.07 billion, which compares to analyst consensus of $2.98 on sales of $1.07 billion. Domestic store comparable sales rose 2%, better than the average analyst estimate of 1.11%. However, the U.S. growth was offset by a drop in International comparable sales of 1.8%, worse than the estimated fall of 1.2%.
Domino’s said it opened 224 new stores in the quarter, much lower than the analyst consensus of 263. The company also reaffirmed its previous fiscal 2022 guidance for food basket pricing.
Stifel analysts commented:
“We were pleased with the SRS performance amid mounting consumer pressures. We surmise the stock’s strength this morning reflects its oversold condition and investors looking out to easier comparisons now that an uncertain quarter is behind them.”
Goldman Sachs analysts added:
“We expect shares to react positively to the 3Q print, particularly as it relates to the better than expected US SSS trends and positioning into the print; however, see the lower unit growth and margins as potentially limiting factors.”
Be the first to comment