2023-07-24 07:00:38 ET
Domino's Pizza ( NYSE: DPZ ) fell sharply in early trading after the pizza store operator fell slightly short of revenue estimates with its Q2 earnings report.
U.S. same store sales were up 0.1% during the quarter, while international same store sales grew 3.6%. Total revenue was down 3.8% year-over-year to $1.02B. The company attributed the decline primarily to lower supply chain revenues due to a decrease in the market basket pricing to stores of 2.4%, as well as lower order volumes. Additionally, U.S. company-owned store revenue decreased as a result of the refranchising of 114 U.S. company-owned stores in Arizona and Utah. Same-store sales were up 5.5% at U.S. company-owned stores, but fell 0.1% at franchised outlets. International stores saw a same-store sales increase of 3.6% for the quarter.
DPZ had second quarter global net store growth of 197 stores, comprised of 27 net U.S. store openings and 170 net international store openings. DPZ had 253 gross store openings and 56 closures during the second quarter.
Net income increased $6.9M during the quarter, primarily due to higher income from operations. Diluted EPS was $3.08 in comparison to $2.82 in the second quarter a year ago and the consensus mark of $3.07.
CEO outlook: Our efforts to improve service and staffing while driving value and innovation will continue to make a difference in driving order counts in this important part of our business. We will also benefit globally from the deal we recently announced with Uber. Over two-thirds of our stores around the world will have the ability to take orders from Uber Eats. We are excited to strategically enter the multi-billion dollar aggregator marketplace as the number one pizza brand in the world."
Shares of Domino's Pizza ( DPZ ) were down 5.08% at 6:59 a.m. on Monday.
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Domino's Pizza trades lower after slight Q1 revenue miss