Domino's Pizza stock jumps 4.6% after earnings sweep past estimates and company backs long-term guidance
By Ciara Linnane
Domino's Pizza Inc.'s stock rose 4.6% early Monday, after the pizza store chain swept past earnings estimates for the first quarter and reaffirmed its long-term guidance.
The company (DPZ) had net income of $15.8 million, or $3.58 a share, in the quarter, up from $104.8 million, or $2.93 a share, in the year-earlier period. Revenue rose 5.9% to $1.085 billion from $1.024 billion a year ago.
The FactSet consensus was for EPS of $3.40 and revenue of $1.080 billion.
U.S. same-store sales rose 5.6%, to beat the FactSet consensus for a rise of 3.1%. International same-store sales were up 0.9%. The company added 164 net stores in the period.
Chief Executive Russell Weiner said growth was boosted by the company's loyalty program and the launch of marketing on Uber Eats, which has put it on track to exit the year at 3% or more of sales coming from that channel.
The company is still expecting 2024 to 2028 global retail sales growth of 8% from operations growth. It expects net store growth of 1,100 plus in the period.
U.S.-company owned store gross margin increased by 0.6 percentage points in the quarter, driven by a decrease in the company's food basket pricing to stores, which drove lower food costs. Sales were also lifted by higher consumer transaction counts.
Those improvements were partially offset by higher wages.
The stock has gained 21% in the year to date, while the S&P 500 has gained 6.9%.
See also: Domino's stock jumps as 'emergency pizza' offer helps fuel earnings beat
-Ciara Linnane
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04-29-24 0712ET
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