Domino’s Pizza (NASDAQ
PZ) fell short of analyst projections in its fourth-quarter results, leading to a 3% drop intra-day today as investors reacted to weaker-than-expected earnings and revenue.
The company posted adjusted earnings per share of $4.89, slightly below the $4.96 consensus estimate. Revenue reached $1.44 billion, missing the $1.49 billion forecast, reflecting slower-than-expected sales growth in key markets.
Global retail sales growth, excluding currency fluctuations, came in at 4.4%, trailing the 4.9% increase from the prior year. U.S. same-store sales edged up just 0.4% year-over-year, indicating moderate domestic demand.
On the international front, same-store sales growth improved to 2.7%, a significant acceleration from the 0.1% recorded a year earlier. Meanwhile, Domino’s continued its aggressive expansion, opening a net 364 new stores worldwide during the quarter.
Despite the revenue shortfall, profitability remained solid. Operating income climbed 6.4% to $273.7 million, while net income rose 7.7% to $169.4 million, reflecting improved cost efficiencies.
In a show of confidence in its long-term growth, Domino’s boosted its quarterly dividend by 15% to $1.74 per share, reinforcing its commitment to shareholder returns despite near-term revenue pressures.
