An employee carries an order for a customer at the Domino’s Pizza restaurant in Detroit.
Sean Procter Bloomberg | Getty Images
Domino’s Pizza on Tuesday reported quarterly profits and revenues that did not meet analysts’ expectations.
The pizzeria chain has also announced that CEO Rich Alison plans to retire. Domino’s chief operating officer and US President Russell Weiner will succeed him as head of the company from May 1.
The company’s shares fell by about 8% in pre-market trading.
Here’s what the company says compared to what Wall Street expected, based on a survey by analysts at Refinitiv:
- Earnings per share: $ 4.25 versus $ 4.28 expected
- Revenue: $ 1.34 billion versus the expected $ 1.38 billion
The pizzeria chain reported net profit for the fourth quarter of $ 155.7 million, or $ 4.25 per share, compared to $ 151.9 million, or $ 3.85 per share, a year earlier. Analysts polled by Refinitiv expected earnings per share of $ 4.28.
Net sales fell 1% to $ 1.34 billion, missing expectations of $ 1.38 billion.
Sales at the same store in the United States rose just 1 percent in the quarter, driven by poor performance at Domino-owned restaurants. Analysts expected sales growth in the same store in the US of 2.9%, according to StreetAccount estimates.
Outside the United States, the chain’s performance has also been disappointing. International sales in the same store grew 1.8% in the quarter, down from StreetAccount’s estimates of 6.6%.
After stepping down as CEO, Alison will continue to serve as an advisor until July 15, when he officially retires.
The company also announced that it has selected Sandip Reddy as its next chief financial officer as of April 1st. Reddy is currently CFO of Six Flags, although he announced on Monday that he would resign on March 27. Prior to Six Flags, he served in the same role for Guess.
Adjustment: Domino’s net sales fell 1% in the fourth quarter of 2021. A previous version incorrectly accounted for the change from year to year.