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Domino’s Pizza and Papa John’s each fell in pre-market trading after reporting mixed earnings on Thursday morning.
Domino’s missed analyst estimates on U.S. same-store sales and total revenue for the quarter. Domino’s also lowered its outlook. Papa John’s posted softer-than-expected North America sales.
Domino’s stock closed down greater than 11%, while Papa John’s fell 6%.
Each pizza firms have raised prices recently to offset rising food, transportation and labor costs. Domino’s reported wavering demand amid a national driver shortage. Last October, Domino’s executives announced plants to boost prices around 7% within the fourth quarter, including spiking its Mix & Match deal from $5.99 to $6.99.
Here’s how Domino’s did, in comparison with analysts’ estimates, in line with Refinitiv:
- Revenue: $1.39 billion vs. $1.44 billion expected
- Adjusted earnings per share: $3.97 vs. $3.94 expected
The Michigan-based company said U.S. same-store sales increased 0.9%, coming in much lower than analyst estimates of three.4%, in line with estimates compiled by StreetAccount. This was a 0.8% decline for fiscal 12 months 2022.
U.S. company-owned stores reported revenues of $117 million, falling wanting StreetAcount estimates of $129.3 million.
The corporate cut its two-to-three-year sales outlook to a variety of 4% to eight% growth from 6% to 10%, citing macroeconomic headwinds weighing down on its domestic delivery business.
Revenue grew 3.6% within the fourth quarter of 2022 in comparison with the year-earlier period, citing higher supply chain revenues consequently of increases in market basket pricing to stores.
This month, Domino’s launched loaded potato tots with three flavors, which some analysts think could raise sales.
“We experienced significant pressure on our U.S. delivery business in 2022 and focused our efforts on creating solutions,” said CEO Russell Weiner. “We also drove continued momentum in our U.S. carryout business and achieved strong international store growth.”
Papa John’s pizza delivery bikes seen parked outside its branch in London.
Dinendra Haria | SOPA Images | Lightrocket | Getty Images
Papa John’s fourth quarter results topped Wall Street’s expectations. Total revenue was down lower than 1% from the corporate’s record fourth quarter last 12 months. Revenues would have been up 3% if not for strategic refranchising for dozens of restaurants.
Here’s how Papa John’s did, in comparison with analysts’ estimates, in line with Refinitiv:
- Revenue: $526.2 million vs. $523.8 million expected
- Adjusted earnings per share: $0.71 vs. $0.66 expected
The Louisville-based company missed estimates on North American company-owned restaurant sales, reporting revenues of $172.2 million versus an expected $172.7 million, in line with estimates compiled by StreetAccount. North America comparable sales were up 1% from a 12 months ago.
The corporate said it expects North America comparable sales to grow annually between 2% and 4%, in line with executives. For 2023, it expects growth to are available on the lower end of that range, they added.
Each Domino’s and Papa John’s earnings come after stronger than expected earnings at McDonald’s and Yum! Brands, each of which beat quarterly earnings and revenue estimates this quarter.
