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HomeFinancialDomino's Pizza (DPZ) Q2 2022 earnings

Domino’s Pizza (DPZ) Q2 2022 earnings

An worker locations a cooked pizza right into a supply field inside a Domino’s Pizza Group Plc retailer.

Jason Alden | Bloomberg | Getty Photographs

Domino’s Pizza on Thursday reported combined quarterly outcomes because the pizza chain struggled with increased prices and an ongoing scarcity of supply drivers.

The Ann Arbor, Michigan-based firm additionally stated it is anticipating meals prices to maintain rising and international forex change charges to pull down its worldwide income greater than beforehand forecast.

Shares of Domino’s had been down virtually 3% at $400.10 in pre-market buying and selling.

Here is what the corporate reported in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.82 vs. $2.91 anticipated
  • Income: $1.07 billion vs. $1.05 billion anticipated

Web revenue within the three-month interval ended June 19 was $102.5 million, or $2.82 per share, down from $116.6 million, or $3.06 per share, a 12 months earlier.

“We continued to navigate a troublesome labor market, particularly for supply drivers, along with inflationary pressures mixed with COVID and stimulus-fueled gross sales comps from the prior two years within the U.S.,” CEO Russell Weiner stated in a press release.

Web gross sales rose 3.2% to $1.07 billion. Domino’s largely attributed the rise in gross sales to the upper meals prices it is charging franchisees. This quarter, operators paid 15.2% greater than they did a 12 months in the past.

However the firm’s same-store gross sales fell at house and overseas throughout the quarter. Within the U.S., same-store gross sales fell 2.9% because it confronted robust comparisons within the year-ago interval, which was boosted by stimulus checks and folks ordering extra pizza at house.

Wall Avenue was anticipating home same-store gross sales progress of 5%, based on StreetAccount estimates.

Worldwide same-store gross sales, excluding international forex modifications, declined 2.2%. Domino’s stated a tax vacation in the UK drove gross sales increased a 12 months in the past, however the nation did not repeat it this 12 months. Analysts had been forecasting roughly flat same-store gross sales progress for the chain’s worldwide unit.

The corporate opened 233 web new shops this quarter, the overwhelming majority of them abroad.

For fiscal 2022, Domino’s is now anticipating meals basket costs to climb 13% to fifteen%, up from its prior forecast of 10% to 12%. The corporate additionally stated that international forex change charges will weigh on its income by $22 million to $26 million, up from its earlier outlook of $12 million to $16 million.

Read the full earnings report here.

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