Domino's Pizza Q4 Earnings Miss Estimates, CEO Ritch Allison To Retire

Domino's Pizza Inc DPZ reported a fourth-quarter FY21 sales decline of 1% year-on-year, to $1.34 billion, missing the consensus of $1.38 billion. EPS of $4.25 missed the consensus of $4.28.

Global retail sales increased 9%, excluding the negative impact of foreign currency and the 53rd-week impact. Without adjusting for the impacts, global retail sales declined 0.2%.

U.S. same-store sales increased 1.0% during the quarter, and International same-store sales rose 1.8%.

The operating margin contracted 180 basis points to 37.7%. Operating income for the quarter declined to $506 million.

The company held $148.2 million in unrestricted cash and equivalents as of January 2, 2022. Cash provided by operating activities for FY21 totaled $654.2 million.

Domino's quarterly dividend of $1.10 per share is payable on March 30, 2022, for shareholders of record as of March 15, 2022.

As of January 2, 2022, the company had a total remaining authorized amount for share repurchases of $704.1 million.

In January 2022, the company reaffirmed its two- to three-year outlook for 6% − 10% global retail sales growth, excluding foreign currency impact.

Management Change: Domino's Pizza also announced that CEO Ritch Allison had informed the board of his intention to retire. He will continue to serve as CEO through April 30, 2022. The company has named Russell Weiner to succeed Allison as the next CEO, effective May 1, 2022.

In connection with the announcement, David A. Brandon will transition from Chairman of the board to the newly established position of Executive Chairman, effective May 1, 2022.

Price Action: DPZ shares are trading lower by 0.23% at $431.20 on the last check Tuesday.