Food & Beverage

Domino's Q3 revenues soar, but not as high as some predicted

Domino's pulls off another strong pandemic-era quarter, though not quite up to analysts' expectations.

Domino's results are up, just not as much as some analysts predicted. (Photo: Domino's/File)

October 8, 2020

Domino's third-quarter results show revenues soared 17.9% in the third quarter, bringing in nearly $147 million more than the same quarter last year and helping the brand to tally up more than $292.4 million more in revenue so far this year than it did last year after three quarters, according to documents it filed with the U.S. Securities and Exchange Commission this morning.

That revenue boost was driven mostly by increasing U.S. orders, though earnings were still below most estimates, with earnings per share falling about 30 cents short of the expected $2.79, though revenues were about $15 million over what analysts expected, coming in at $968 million for the period.

Other results for the quarter include:

Quarterly net income grew from $86.4 million ($2.05 per share) last year to $99.1 million ($2.49 per share) this year.
Quarterly net sales grew 17.9% to $968 million.
Quarterly U.S. same-store sales grew 17.5% over last year's quarter.
Quarterly international same-store sales grew 6.2% year-over-year.
Quarterly dividend of 78 cents per share to shareholders of record on Dec. 15 is payable on Dec. 30.
83 net new stores in quarter, including 44 in the U.S. and 39 net new international stores.

"I am extremely proud of our global franchisees, operators and corporate teams for their relentless passion and energy as we continue to navigate through the pandemic," Domino's CEO Ritch Allison, said in a news release about the quarterly earnings. "Our strong third quarter results once again demonstrated our focus on value, service, quality and innovation to meet customer needs."

As of Oct. 5, fewer than 300 of Domino's international locations are temporarily shuttered. During the quarter, the company permanently closed 126 restaurants, primarily in India.

In the second quarter, due to the uncertainty caused by the crisis, Domino's borrowed $158 million under its variable funding notes. It has since repaid that debt.