Domino's Pizza Shares Fall On Q3 Revenue Miss, US Same-Store Sales Decline

Domino's Pizza Inc DPZ reported third-quarter FY21 sales growth of 3.1% year-on-year, to $997.99 million, missing the analyst consensus of $1.04 billion.
Global retail sales increased 10.0%, or 8.5%, excluding foreign currency impact.
U.S. same-store sales decreased 1.9% during the quarter. On a two-year basis, U.S. same-store sales were up 15.6% over the 2019 baseline.
Same-store sales for U.S. company-owned stores fell 8.9% Y/Y, while that of international stores rose 8.8%.
The operating margin expanded 120 basis points to 38.6%, and operating income for the quarter rose 6.4% to $385.2 million.
The company held $668.31 million in cash and equivalents as of September 12, 2021.
Cash provided by operating activities for the nine months totaled $484.6 million with a free cash flow of $433.9 million.
EPS of $3.24 beat the analyst consensus of $3.11.
Analyst Rating: Morgan Stanley analyst John Glass maintained Overweight on Domino's Pizza and lowered the price target from $564 to $559, suggesting a 17% upside.
Price action: DPZ shares traded lower by 3.42% at $460 in premarket on the last check Thursday.

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