Domino's Pizza (NYSE:DPZ) shares fell after the pizza delivery and restaurant chain reported third-quarter revenue that fell short of expectations but a strong earnings beat.
The Ann Arbor, Michigan-based company posted a 5.1% increase in global retail sales for the quarter, excluding the positive impact of foreign currency and the closure of the Russia market. While international same-store sales rose 3.3%, this was offset by a 0.6% decline in US sales.
Total revenue fell 3.4% to $1.03 billion, worse than the $1.05 billion expected by the Street. Apart from the decline in revenue from US company-owned stores, it attributed the fall to lower supply chain revenues due to a decrease in market basket pricing as well as lower order volumes.
Earnings per share jumped almost 50% to $4.18, above the consensus estimate of $3.29, based on the forecasts of 11 analysts surveyed by Zacks Investment Research.
"We continue to execute on our initiatives to drive sustainable growth in the US," CEO Russell Weiner commented.
"Our 'Summer of Service' initiative and the hard work of our franchisees and team members have brought delivery times back to pre-pandemic levels. Domino's Rewards is engaging more customers, and our integration with Uber's marketplace is on track. We are ready and excited to deliver the incremental orders both programs will bring in 2024 and beyond."
Ahead of the opening bell, the company’s shares were down 2.8% at $344.
Contact the author at stephen.gunnion@proactiveinvestors.com