At US locations open for at least one year, sales declined 1.9% in the three months to early September
According to a FactSet survey, Domino’s posted sales of $998 million, up from $967.7 million 12 months ago, but less than the $1.03 billion that analysts were forecasting. Domino’s profits also climbed 30% to $3.24 per share. Analysts were expecting a profit of $3.11 per share.
The stock declined 3.7 per cent in premarket trading.
US sales of Domino’s have soared during the pandemic as people who spend time at home order more frequently. Despite the recent decline, same-store US sales are still up 16% from pre-pandemic levels from 2019, Chief Executive Rich Allison said.
According to a research note by Brett Levy, an analyst at MKM Partners, this was the first quarter in more than a decade that US same-store sales declined for Domino’s. Mr. Levy cited Domino’s growth streak in recent quarters as a sign that it is adapting to changing customer habits during the pandemic.
During the summer, the reversal was sharpest at company-owned US stores, where comparable sales were down 8.9%. US franchise locations outperformed, posting a 1.5% decline. International sales continued to improve, with overseas same-store sales up 8.8%.
323 new Domino’s stores opened worldwide this quarter, including 45 in the US
Recent buybacks have helped boost Domino’s profits per share, as they mean earnings are now spread out over fewer shares.
Matt Grossman at [email protected]