Domino's Same-Store Sales Short for 4th Consecutive Quarter

Associated Press

Tuesday October 8, 2019

Domino's Pizza had a weaker-than-expected third quarter with pressure building from third-party delivery services like UberEats and DoorDash.

Domino's was a pioneer in recognizing the value of getting food to the doorstep of customers fast and it's one of the biggest national chains to maintain an in-house delivery infrastructure.

It now faces an onslaught of start-ups that are offering rebates to use their delivery services from thousands of smaller, local pizzerias and other types of restaurants, including national fast food chains like McDonald's.

On Tuesday, the world's biggest pizza chain reported its fourth consecutive quarter of declining same-store sales in the U.S.

Sales at U.S. stores open at least a year rose 2.4%, shy of the 2.7% growth Wall Street had anticipated, according to analysts polled by FactSet.

Net income rose 3% to $86.4 million, or $2.05 per share, 2 cents short of Wall Street forecasts. Revenue rose 4% to $820.8 million, also lower than expected, according to FactSet.

Shares slid 5% before the opening bell.

Domino's has tried to counter the competition in delivery by opening more stores with the goal of getting food to people even faster. It opened 214 stores in the quarter and ramped up promotions in August and September which can boost volume, but increase pressure on the bottom line.

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