Domino’s (DPZ) 3Q 2021earnings beat

Dominoes in Denmark

Francis Dean

Dominos pizza attempted to reassure investors Thursday that it has more growth ahead of it, despite having a long-running streak of U.S. top-line sales in the same business.

Investors listened and saw stocks rise 2% in morning trading after falling as much as 5% before the market opened. Ultimately, the shares closed virtually unchanged at $ 477.48.

Domino’s earned $ 3.24 per share for the third quarter, beating the $ 3.11 per share that Refinitiv surveyed analysts had expected.

Despite slowing US sales growth in the same business, analysts found bright spots in the company’s earnings report.

“[U]The nit development continues to be a major growth driver, “wrote BTIG analyst Peter Saleh in a customer announcement on Thursday.[M]The omentum has returned to bring the current pace to 6.5%, margin performance has been more respectable given the sales results, and the company has been aggressively buying back its shares lately. “

The pandemic sparked an exploding demand for Dominos pizza in its home market, but as consumers were vaccinated and restrictions were relaxed, investors became concerned about pizza fatigue. In the last quarter despite difficult comparisons Sales in the US in the same store were still up 3.5%.

However, in the company’s third quarter, domestic same-store sales turned negative for the first time since 2011. US sales in the same store were down 1.9%, even though the metric was up 15.6% on a 2-year basis. StreetAccount expected the company to report 1.8% sales growth in the same store in the US.

CEO Ritch Allison said “a very difficult workforce” is putting US transactions under pressure. For example, some locations had to shorten their opening times. Executives said they are taking steps to improve their work challenges, including introducing a new applicant tracking system and updating franchisees to be the most efficient use of their employees’ time.

“There is no doubt that we will continue to face staffing and other issues with Covid. We also expect the inflationary headwinds to continue to affect Domino’s and the restaurant industry as a whole in the coming quarters, but we will all face these challenges and headwinds. ” from a position of strength, “Allison told analysts.

Allison also said US sales were hurt by the fading effects of the economic controls, which had largely subsided by the third quarter of this year.

The decline in US demand resulted in the pizza chain falling short of Wall Street’s sales estimates. Analysts surveyed by Refinitiv had forecast net sales of $ 1.04 billion, but Domino reported sales of $ 998 million for the quarter.

Outside of the US, the company’s business is doing much better. International same-store sales increased 8.8% for the quarter, up 15% on a two-year basis.

Domino’s shares are up more than 24% this year, reaching a market value of $ 17.6 billion.

Read the Domino press release.

Invoice Ackman reveals 6% stake in Domino’s Pizza, shares soar

Billionaire investor Bill Ackman said Wednesday his hedge fund had built a 6% stake Dominos pizzaand exchanged his Starbucks Bet.

Ackman revealed that Pershing Square had sold Starbucks after the coffee chain quickly recovered from the pandemic. At the same time, he took up Dominos stocks after a pullback.

“We sold Starbucks. It came at a price where it was difficult to get the excess returns we’d like to deserve … The stock just rallied too quickly,” Ackman said during the Future of Everything festival on Wall Street Journal.

The investor said that for a brief moment, Domino’s stock “fell dramatically for reasons we didn’t understand and we were able to swap Starbucks for Domino’s pizza.” He said he started buying for around $ 330 a share.

“We didn’t get as much as we’d like, but we own a little less than 6%,” added Ackman.

The hedge fund manager has been betting heavily on the return of the restaurant, retail and hotel industries. His top positions at the end of 2020 included Lowes, Hilton, Restaurant brands and Chipotle.

Domino’s Pizza stocks rose more than 3% to their daily high of around $ 435 apiece after Ackman’s remarks. Starbucks stock fell 2.3% on Wednesday.

Pershing Square owned more than $ 1 billion worth of Starbucks late last year. After hitting a pandemic low in March 2020, Starbucks shares quickly returned, ending the year more than 20%.

Ackman said he was optimistic about Domino’s landmark moves in terms of technology and delivery. The stock is up more than 13% in 2021.

“Domino’s is a pure franchise company and, interestingly, they were the first to invest in technology and delivery,” he said. “They own their delivery infrastructure and do not have to rely on the world’s DoorDashes.”

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Domino’s Pizza elevating cash for Domino’s Village, housing facility at St. Jude

TOPEKA, Kan. (KSNT) – How would you feel if every box of pizza you bought helped a child with cancer? Help them keep families close together at a time that can be difficult.

Domino’s Pizza makes sure that they are doing something to help the families who are going through the challenging childhood cancer situation. The company is soon to offer housing on its Memphis campus to solve another problem.

“The first way people can raise funds is to just round up their checks,” said Steve Covey, development director for Domino’s Dream Team Pizza.

Every year Domino’s runs his “Thank you and give” Campaign for St. Jude Children’s Research Hospital.

“You know, two cents here, 30 cents there,” said Covey. “Doesn’t seem like much at the time, but it adds up.”

Now the pizza chain is doing things differently and using the campaign year round to help build the Dominos village. Domino’s Village is used to give families the opportunity to stay close to their child for free. Families like Kris Myers-Trysla.

At seven months, Myers-Trysla’s son Clayton was confronted with a rare cancer diagnosis.

“They scanned him and he was diagnosed with a primitive neuroectodermal tumor,” she said. “Stage Four Brain Cancer.”

Her family had to get up and leave their Kansas home to move to Memphis to receive treatment for Clayton. At that time they were housed in the target house on the St. Jude campus.

“There are different apartments. There is the Tri Delta House, the Ronald McDonald House and then there is that Target house. The target house is intended for families who know that they will be there for more than three months. “

Finding Housing for Another Financial Hurdle St. Jude didn’t want families to worry about it.

“Cancer is expensive,” said Myers-Trysla. “Nobody can afford cancer. But for those families who would say: “I absolutely … I have no insurance, I cannot get my child treated”. I mean, it’s such a gift for so many people. “

This is where Domino’s Pizza comes in as, with your help, they prepare to begin building Dominos Village.

“Obviously, you must have loved ones around when your kids are in the hospital,” said Covey. “Domino’s Village will be a place where families can stay for free while their children are looked after. And that’s supposed to open in 2023. “

You can help a family and their child get through the tough battle against childhood cancer with every slice and piece of cheese at Domino’s to make sure no one sees a bill in St. Jude.

Across the country, one of Domino’s Pizza in Topeka took second place to raise the most money for St. Jude in 2020. In total, all of the stores in the US raised more than $ 13 million.