News

Domino's misses mark on Q3 expectations

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October 8, 2019

Domino's CEO Ritch Allison said, "It was a good quarter for Domino's," during Q3 2019, but some of the company numbers from its financial report for the period suggest otherwise, with same-store sales that fell well short of analysts' estimates, both nationally and worldwide. 

But there was sales growth, including 1.7% company-owned same-store sales and 2.5% in franchise same store sales. Yet, both those missed the analysts consensus estimated of 2.6% in the third quarter for each. Similar global retail sales grew just 5.8%, when the estimate was 7.5% (excluding foreign impact) while international sales turned  in a 1.7% increase, down from the 2.86% estimate. 

Other key Q3 numbers for the brand, include:

• Q3 global net store growth of 214 stores (40-U.S. and 174 international). 
• Diluted EPS up 5.1% quarter-year over quarter-year to $2.05.
• U.S. company-owned store sales off 20.2% to $94.58M.
• U.S. franchise royalties and fees up 8.5% to $97.05M.
• International franchise royalties and fees up 8.3% to $54.59M.
• Quarterly dividend of 65 cents, payable Dec. 27 to shareholders of record as of Dec. 13.

"It was a good quarter for Domino's, as we continue to lean on our fundamental strength against a unique competitive environment," Allison said in the company's Q3 statement. "Strong unit growth and positive comps yielded a solid and balanced quarter of retail sales growth across both the U.S. and international businesses. We remain steadfastly focused on driving profitable growth for the Domino's system, and most importantly, for our franchisees."