Domino’s Pizza (NYSE:DPZ)
Despite a mixed earnings report for the first quarter, Domino’s Pizza (NYSE:DPZ) shares rose in Thursday’s early trade. Revenue increased 1.0% to $1.02B, while EPS came in at $2.93, above the $2.69 consensus estimate.
Excluding the negative effect of foreign currency, quarterly global retail sales climbed by 5.9%. Same-store sales in the United States were up 3.6%, while same-store sales internationally were up 1.2% (adjusted for currency fluctuations). Domino’s Pizza stock reported a quarterly rise of 4.6% in market basket pricing to retailers.
The rise in net income of $13.8M was driven largely by the $12.9M increase in income from operations. A rise in interest revenue on cash and equivalents led to a decrease in net interest expenditure, which increased net income. Higher revenue before income taxes was offset by a lower effective tax rate, resulting in a $1.8M increase in income tax allowance.
During the first quarter, DPZ spent $30.1M to buy back and retire 100,515 shares. After the quarter, DPZ had $380.3M left of its permitted amount for share repurchases.
There were 128 new shops opened by Domino’s worldwide in the first quarter. This included 22 new locations in the United States and 106 new locations in other countries.
As I look back on the first three months as CEO of Domino’s Pizza, I am heartened by the resiliency of our business model and the competitive edge our franchisees and team members provide to the company. As we continue to grow from a U.S. delivery company into a worldwide pizza powerhouse with a strong presence in delivery and carryout, I remain optimistic about our firm’s prospects.
The pizza chain’s CEO has predicted future capital expenditures of $90 million to $100 million. Domino’s Pizza (DPZ) disclosed a $0.08 increase, from $0.385 to $0.395, in the digital per-transaction technology fees recognized in conjunction with the corresponding U.S. franchise retail sales.
Domino’s Pizza stock declined, reaching $321.44, compared to its 52-week low of $291.00 and high of $426.44.
Featured Image: Unsplash @ alexagorn
