Why Domino's Looks Like a Buy After Its Latest Earnings Report
Shares of Domino's (NYSE: DPZ) fell 7% following its third-quarter earnings report on Thursday, as the pizza delivery giant missed expectations on the bottom line, despite another round of blowout sales growth.
Same-stores sales jumped 17.5% in the U.S. and 6.2% internationally, and overall revenue rose 17.9% to $967.7 million, easily beating estimates at $953 million. Earnings per share rose 21.5% to $2.49, but that was short of expectations at $2.78.
Net income grew slightly more slowly than revenue due to an increase in performance-based compensation, higher compensation and additional sick pay for frontline workers, and COVID-19-related safety expenses. Commodity pressure on food costs also crunched margins.
Source Fool.com
