Domino’s Pizza (NYSE:DPZ) led the S&P higher on Thursday after posting strong sequential sales growth in a Q3 earnings report.
For the third quarter, the Michigan-based pizza chain posted mixed results on EPS and revenue. Diluted EPS decreased 13.9% from the prior year to $2.79 while $1.07B in revenue was recorded. Analysts had anticipated $2.98 and $1.07B, respectively. However, a 2% gain in U.S. same store sales, a contrast to a 3.6% decline in the prior quarter, appeared to garner market attention. Global retail sales rose 4.7% from the prior year.
"I'm encouraged with our performance and the sequential improvements we made during the third quarter,” CEO Russell Weiner said. "As we begin the fourth quarter, I believe Domino's is poised to emerge from these volatile times stronger than ever. We delivered around one out of every three pizzas in the United States before the pandemic, and we deliver around one out of every three pizzas today. Combined with our strong carryout business where we have continued to accelerate our momentum, I have never been more confident in the future of Domino's Pizza."
Elsewhere, the pizza chain cut its full year capital expenditure forecast to $100M from a prior $120M and General and administrative expenses from a range of $420M to $428M to $415M to $420M. A food basket pricing increase of 13% to 15% was maintained in the guidance.
Shares of Domino’s Pizza (DPZ) rose 10.48% in afternoon trading on Thursday as the market roared back from early losses. By midday, the Dow had run to a 600 point gain after beginning the day down nearly 500 points.
Dig into the details of the results.