Domino's Pizza delivers 16% growth while fending off app-based rivals
Domino's opened 492 new stores worldwide in the last three months of 2019
Domino's Pizza delivered better-than-expected results in the fourth quarter despite increasing competition from food-delivery companies like DoorDash.
The Ann Arbor, Michigan-based company — which has 17,000 stores worldwide — said Thursday that its fourth-quarter earnings rose 16% to $129.3 million. Adjusted for one-time items, the company earned $3.13 per share, beating Wall Street's forecast of $2.98 per share, according to analysts polled by FactSet.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Domino's U.S. same-store sales — or sales at locations open at least a year — rose 3.4% for the quarter, which also beat analysts' forecast for 2.4% growth. Still, it was the fifth consecutive quarter that Domino's same-store sales were lower than the prior year. It reported 6.7% same-store sales growth in the fourth quarter of 2018.
(AP Photo/Sunday Alamba, File)
Domino's is rapidly building new stores to crowd out competitors like Papa John's and ensure quick delivery times.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DPZ | DOMINO'S PIZZA INC. | 473.59 | -8.02 | -1.67% |
During the fourth quarter, Domino's opened 492 net new stores worldwide; it opened 1,106 net new stores in 2019. But some investors have been concerned that those stores are stealing share from other Domino's locations.
TOP 5 FAST FOOD RESTAURANTS WITH MOST LOYAL CUSTOMERS
Domino's hasn't yet said what impact the viral outbreak in China, where it has 274 stores, could have on its earnings.
Revenue rose 6% to $1.15 billion for the quarter, the company said, beating analysts' forecast of $1.12 billion.