Domino’s Pizza (DPZ) This autumn 2020 earnings miss

An employee takes a pizza out of the oven at a Domino’s Pizza restaurant in Rantoul, Illinois.

Daniel Acker | Bloomberg | Getty Images

Domino’s Pizza reported Thursday that it missed its quarterly earnings estimates as pandemic costs weighed on profits and US sales growth slowed in the same store.

The pizza chain also released a new outlook for the next two to three years.

The company’s shares fell around 7% in premarket trading.

The company reported, relative to Wall Street expectations based on an analyst survey by Refinitiv:

  • Earnings per share: $ 3.46, adjusted versus expected $ 3.89
  • Revenue: $ 1.36 billion versus $ 1.39 billion expected

The pizza chain reported net income of $ 151.9 million, or $ 3.85 per share, for the fourth quarter, compared to $ 129.3 million, or $ 3.12 per share, last year. Performance-related expenses and costs related to the coronavirus pandemic, including improved wages and bonuses for restaurant workers, weighed on profits.

Disregarding items, Domino earned $ 3.46 per share, falling short of what Refinitiv polled analysts had expected $ 3.89 per share.

Net sales rose 17.9% to $ 1.36 billion, below expectations of $ 1.39 billion. US sales in the same store increased 11.2% from 17.5% in the third quarter. International sales in the same store rose 7.3%.

The company’s new two to three year outlook foresees net growth of 6% to 8% and global sales growth of 6% to 10% excluding foreign currency.

Read the full report here.

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