Domino's Pizza Q4 Earnings Report
Domino's Pizza exceeds Q4 earnings expectations, expands globally, and partners with Uber Eats for growth.
Domino’s Pizza reported better-than-expected earnings for the fourth quarter amidst inflationary pressures. The company posted quarterly revenue of $1.403 billion, slightly below Wall Street's forecast but still up by 0.8% from a year ago. Earnings per share came in at $4.48, exceeding analysts' expectations of $4.38 per share, marking a 1.1% increase from the previous year.
While the company-owned stores in the U.S. faced a 1.6 percentage point decrease in gross margin, primarily due to higher labor and insurance costs and the relaunch of its rewards program, Domino’s saw a 2.8% increase in same-store sales domestically. However, same-store sales in overseas markets remained relatively flat.
Despite stagnant overseas sales, Domino's opened over 300 new locations internationally in the fourth quarter, surpassing the addition of fewer than 100 new stores in the U.S. The company is focusing on expanding its global footprint to overcome challenges and pursue growth opportunities.
Global Sales Reach $5.7 Billion Excluding impact from foreign currency, Domino's Pizza chain reported a 4.9% increase in global sales, reaching $5.7 billion in the fourth quarter. Sales were evenly split between domestic and international segments, both of which showed significant growth over the past year.
Expansion and Sales Increase At its Investor Day event, Domino's announced plans to open 1,100 new stores by 2028 and achieve a 7% increase in retail sales annually. The pizza chain also collaborated with Uber Eats to target wealthier households and boost sales in the delivery sector.
Confidence in Future Growth Management emphasized that the company's growth strategy is yielding positive results. CEO Russell Weiner stated, "Domino's foundation has never been stronger. These results validate our brand and our ability to generate value for shareholders."
Positive Market Reaction As of the latest trading session, Domino's stock has increased by 47% over the past year, reflecting investor confidence in the company's growth trajectory.
Leave Comment