Domino's Warns Sales Growth May Slow
October 08 2019 - 7:44AM
Dow Jones News
By Micah Maidenberg
Domino's Pizza Inc. said that sales growth may be slower than it
previously expected over the next few years, a warning that comes
as more restaurant chains begin offering delivery.
The world's largest pizza company said Tuesday it expects U.S.
same-store sales, a metric that covers sales from Domino's
locations open for at least a year, to grow between 2% and 5% over
the next two to three years. Earlier, the company predicted those
sales would increase 3% to 6% over three to five years.
Domino's faces heightened competition for diners as a broader
set of competitors start offering food via third-party delivery
companies, often at cheap prices.
McDonald's Corp., for example, has struck delivery deals with
DoorDash Inc. and Uber Technologies Inc. 's Uber Eats. In August,
Panera Bread said it would work with those two services, as well as
Grubhub Inc.
Domino's on Tuesday reported $820.8 million in revenue for its
fiscal third quarter ended Sept. 8, up about 4% compared with last
year but weaker than predictions from Wall Street analysts,
according to FactSet.
Same-store sales grew 2.4% in the U.S. in the quarter compared
with a year earlier.
Shares of Domino's fell about 6% in premarket trading.
The Ann Arbor, Mich.-based company reported a profit of $86.4
million, or $2.05 a share, in the latest quarter, compared with
earnings of $84.1 million, or $1.95, a year earlier.
Domino's adjusted profit, also $2.05 a share, missed
expectations by 2 cents.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
October 08, 2019 08:29 ET (12:29 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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