Domino’s Pizza’s (DPZ.US) share price is up nearly 10% today despite mixed financial results. Earnings per share fell, while revenue rose slightly above Wall Street expectations:
Earnings per share (EPS): $2.79 vs. $2.97 forecast ($3.24 in Q3 2021)
Revenue: $1.07 billion vs. $1.06 billion forecasts
• Net income fell to $100.5 million vs. $120.4 million in the year-ago quarter ($3.24 per share). According to management, the decline is due to higher income tax provisions and lower income from operations;
• Domino’s CEO Russell Weiner indicated that the company intends to raise the price of its popular offer’ mix-and-match deal’ from $5.99 to $6.99 effective October 17. The previous increase in the price of the deals in the supply proved beneficial to the company.
Previously, the company had offered a 20% discount on such orders, as a gesture of ‘inflationary solidarity’ with consumers, which drove sales.
The company maintained its previous forecast for rising food costs in the range of 13% to 15% annually. However, management reported a 1.8% decline in sales at branches outside the United States, after excluding the impact of foreign exchange;
• The company reported the sale of 114 company-owned stores in Utah and Arizona to franchisees for $41.1 million. Domino’s expects first profits from the transaction in the fourth quarter of the year and ultimately plans to reduce the cost of maintaining the facilities;
The company expects higher revenue from on-premises orders, driven by the absence of pandemic restrictions and cost-cutting by customers. Currently, 1/3 of orders are fulfilled via paid delivery.
Domino’s Pizza on Oct. 11 announced that it will pay a quarterly dividend of $1.10 per share to holders of shares before Dec. 15 of this year. The dividend is scheduled to be paid on December 30, 2022.
