Domino’s Pizza Inc (NYSE:DPZ) melted in pre-market trade on Tuesday after the pizza delivery group’s rise in fourth-quarter same-store sales and revenues wasn’t enough to beat Wall Street forecasts.
Same-store sales - a key metric for retailers which strips out that impact of new and closed stores - in the US rose 3.8%, while those at its franchise stores jumped 4.2% in the three months ended December 31.
But analysts had expected same-store sales to rise by almost 6% at both company-owned and franchise stores, according to those polled by Thomson Reuters.
Same-store sales in Domino’s international business rise 2.5% compared to the year-ago period, but again missed estimates of 5.4%.
Total revenues jumped almost 9% to US$891.5mln in the quarter, but Wall Street number crunchers had expected the figure to break through the US$900mln mark.
Net income rose to US$93.3mln, or US$2.09 per share, in the quarter, up from US$72.7mln, or US$1.48 per share, a year earlier.
The stock slipped 1.5% to US$217.49 shortly before the opening bell in New York.