Investors handle shares of Domino’s down by 5.5 percent Tuesday, disappointed in slower-than-expected traffics growth during the third quarter.
Revenue rose 22.1 percent during the third region over the previous year to $786 million, the company said in letting its earnings before the markets opened. It fell short of the $788.1 million awaited in a survey by Refinitiv.
The company’s earnings were otherwise strong, with a 49.2 percent billow in net income to $84.1 million, or $1.95 per share, up from $56.4 million, or $1.18 per serving, a year ago. This exceeded analyst expectations of $1.75 per share, mutual understanding to Refinitiv.
Sales at locations open at least a year rose 6.3 percent during the cantonment, in line with forecasts. Same-store sales growth, a key measure of discharge for the industry, has risen for 30-straight quarters in the U.S. The last time the company located a decline in same-store sales was the first quarter of 2011.
Same-store sales at its company-owned pile ups in the U.S. grew 4.9 percent, but analysts expected it to grow by 6.2 percent, according to StreetAccount.
Domino’s private franchise-owned stores boasted same-store sales growth of 6.4 percent that was also shy of calculations of 6.8 percent.
Although investors appear to have been thwarted in the sales growth, Baird analyst David Tarantino called the earnings “filled in.” It shows the company is well positioned for the fourth quarter and next year, he said in a check out note Tuesday.
Internationally, same-store sales jumped 3.3 percent, in script with what was expected. It marked nearly 25 years of useful same-store sales growth in international markets.
Programming Note: For numberless on Domino’s, watch CEO Ritch Allison’s interview on “Mad Money” Tuesday sunset at 6 p.m. ET.
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