Domino's misses sales, profits estimates as delivery competition heats up

Domino's sticking to growth plan despite sales pressures

During the third quarter of 2019, the Company repurchased and retired 384,338 shares of its common stock under its Board of Directors-approved share repurchase program for approximately $93.7 million, or an average price of $243.79 per share. In late 2009, the company started airing self-deprecating commercials which acknowledged the poor taste of the pizza, promising customers that they have improved their product.

It was a good quarter for Domino's, as we continue to lean on our fundamental strength against a unique competitive environment", "Strong unit growth and positive comps yielded a solid and balanced quarter of retail sales growth across both the USA and global businesses.

As CNBC reports, Domino's has been facing growing competition from third-party delivery apps. This increase was primarily due to an increase in worldwide store counts during the trailing four quarters, as well as US and international same-store sales growth, resulting in higher supply chain and global franchise revenues.

The slowing growth has anxious Wall Street, which has sent Domino's stock down 13% over the past year. Domino's Pizza had a negative return on equity of 12.81% and a net margin of 10.83%.

Now the pizza delivery company is forecasting 7% to 10% global retail sales growth over the next two-to-three years with US same-store sales growth of 2% to 5% and worldwide same-store sales growth of 1% to 4%.

"There is just a level of uncertainty in the near-term around some of the competing delivery offers in the marketplace", Allison said. He also said that the company's fortressing strategy will continue to put pressure on same-store sales in the coming years.

But there was sales growth, including 1.7% company-owned same-store sales and 2.5% in franchise same store sales.

Same-store sales at restaurants open for more than a year in the United States rose 2.4 percent in the quarter, its slowest growth in at least 15 quarters.

USA company-owned store sales off 20.2% to $94.58M.

Domino's closed at $242.21 per share Monday, down roughly 2.3% year-to-date.

Domino's on Tuesday reported $820.8 million in revenue for its fiscal third quarter ended September 8, up about 4% compared with a year ago but weaker than predictions from Wall Street analysts, according to FactSet.

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