Shares of Domino’s Pizza (NYSE: DPZ) fell nearly 6% on Tuesday after the Company posted lackluster revenue and U.S. same store sales growth. During the second quarter, the restaurant chain said global revenue reached USD 811.6 Million, a 5.1% rise from a year earlier but short of estimates of USD 836.6 Million. Sales in U.S. stores open at least a year grew 3.0%, versus analysts’ estimates of USD 4.8%. Internationally, same store sales rose 2.4%.
Despite troubling revenue and comparable sales results, the Michigan-based pizza chain delivered better-than-expected earnings for the period. EPS came in at USD 2.19, ahead of Zacks consensus estimate of USD 2.00.
The Company opened 200 net new stores during the second quarter, including 42 in the U.S. and 158 internationally.
“As a work-in-progress brand, we are constantly striving to improve in needed areas, execute our long-term strategy and build toward Dominant #1 – a goal I continue to feel we are built to achieve,” said Ritch Allison, Domino’s Chief Executive Officer. The Company is already the largest pizza chain in the world based on global retail sales, but it’s aiming for a more “dominant” position. By 2024, Domino’s expects both U.S. and international same store sales to grow up to 6%. Worldwide retail sales are projected to increase 8% to 12%.
According to American market research company, The NPD Group, Domino’s controlled 31% of the pizza delivery market in 2018. It also held 18% of the entire fast food pizza market compared to other chains and independent stores.