Domino’s Pizza stock slips as Q4 earnings, revenue miss estimates

Fast-food chain Domino’s Pizza (DPZ) posted its fourth-quarter 2018 earnings before the opening bell on Thursday, Feb. 21. Revenues soared 21.4% to $1.08 billion. The stock slipped at least 7% in pre-market trade after the top-line and bottom-line missed Street consensus.

Net income jumped 19.6% to $111.6 million on lower effective tax rate, higher US royalty revenues and higher supply chain volumes in the fourth quarter. Diluted EPS jumped 25.4% to $2.62. Adjusted earnings were the same as GAAP earnings per share in the quarter.

Global retail sales increased by 6.5% in the fourth quarter, while US same-store sales grew 5.6% from a year ago.

Despite a recent cut in estimates, the Street still expected the company to earn $2.65-a-share on revenue of $1.09 billion.

In the three-month period, Domino’s Pizza had global net store growth of 560 stores — comprising 125 net new US stores and 435 net new international stores.

LOOKING FORWARD

Domino’s Pizza reaffirmed its three to five-year outlook with global retail sales to grow 8% to 12%, with US same-store growth of 3-6%.

International same-store sales is expected to rise by 3-6%. Net unit growth is estimated from 3% to 6%.

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