Analysts were forecasting roughly flat same-store sales growth for the chain's international unit. Domino's said a tax holiday in the United Kingdom drove sales higher a year ago, but the country didn't repeat it this year. International same-store sales, excluding foreign currency changes, declined 2.2%. Such partnerships can help sales but typically hurt profits because of the commission fees charged per order.
Rivals Pizza Hut and Papa John's have been leaning on their third-party partnerships in recent quarters to alleviate the shortage of drivers. Wall Street was expecting domestic same-store sales growth of 5%, according to StreetAccount estimates.ĭuring the conference call, executives said they believe they can resolve staffing troubles internally, indicating that they won't be tapping third-party delivery companies like Doordash for help. In the U.S., same-store sales fell 2.9% as it faced tough comparisons in the year-ago period, which was helped by stimulus checks and people ordering more pizza at home. Price increases of nearly 6% and strong carry-out order growth also boosted sales but weren't enough to offset the blow from understaffing. This quarter, operators paid 15.2% more than they did a year ago. Domino's largely attributed the increase in sales to the higher food costs it's charging franchisees. Net income in the three-month period ended June 19 was $102.5 million, or $2.82 per share, down from $116.6 million, or $3.06 per share, a year earlier. Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv: Shares of Domino's were up modestly in afternoon trading. restaurants are using call centers to take orders so their workers can focus on making and delivering pizzas.ĭomino's also said it expects food costs to keep rising and unfavorable foreign currency exchange rates to drag down its international revenue more than previously forecast. To address customer service difficulties, roughly 40% of Domino's U.S.
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have been hurt by some locations shortening their hours as a result of the driver shortage.
The Ann Arbor, Michigan-based company's same-store sales fell at home and abroad during the second quarter. Personal Loans for 670 Credit Score or Lower
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