The company has also been funding some of those buybacks with debt instead of its own free cash flow ( FCF), which is an odd decision considering that its shares have lost about 30% of their value over the past 12 months.
As a result, Domino's adjusted earnings per share ( EPS) have declined year-over-year for three consecutive quarters, even after factoring in an $0.08-per-share boost from its buybacks over the past 12 months. But its margins are still decliningĭomino's revenue is still growing, but its gross margins are being squeezed by inflation - and it's only partly offsetting that pressure with its price hikes. Analysts expect Domino's total revenue to rise 5% this year, then grow 6% to $4.88 billion in 2023 as the year-over-year comparisons finally stabilize. in the third quarter of 2021 that didn't occur again this year. That recovery offset its decline in international same-store sales, which was largely caused by a difficult year-over-year comparison to a value-added tax holiday in the U.K. The rising dollar also reduced its overseas revenue and prompted it to start reporting its international same-store sales growth in constant currency terms this year.īut in the third quarter, Domino's domestic same-store sales grew again as its growth in average ticket size (which was boosted by its recent price hikes) offset its declining number of total orders.
#DOMINOS STOCK FOR 14TH DRIVERS#
*Constant currency.ĭomino's blamed its slower domestic growth in the first half of the year on a shortage of delivery drivers and other workers, inflationary headwinds, and tough comparisons to its pandemic and stimulus-driven growth over the previous two years. International Same-Store Sales Growth (YOY)ĭata source: Domino's Pizza. Its international same-store sales also declined in the second and third quarters. However, its domestic same-store sales started to decline in the first half of 2022, which prompted the bears to claim that Domino's was relying too heavily on new store openings to drive its global retail sales growth. It had also invested in the expansion of its online ordering platform and mobile app over the past several years.ĭomino's growth cooled off in 2021 as more restaurants reopened, but it continued to open hundreds of new stores every quarter. Unlike many of its industry peers, which hastily shifted toward third-party delivery platforms like DoorDash to weather that downturn, Domino's business was already built to make efficient first-party deliveries.
Its sales are gradually stabilizingĭomino's growth accelerated significantly throughout 2020 as many brick-and-mortar restaurants shut down during the pandemic.
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