An employee holds an order for a customer at Domino’s Pizza in Detroit.
Sean Proctor | Bloomberg | Getty Images
Domino’s Pizza On Tuesday, it announced a revised C-suite and quarterly results that beat expectations in most metrics, sending shares down sharply.
The pizza chain reported fourth-quarter earnings and revenue that didn’t live up to analyst expectations and also announced that CEO Rich Allison is planning to retire. Chief Operating Officer and US President Russell Weiner will succeed him as company president, effective May 1.
The company’s shares were down 8% in pre-market trading before paring pre-market losses.
Here’s what the company reported compared to what Wall Street was expecting, based on an analyst survey by Refinitiv:
- Earnings per share: $4.25 vs. $4.28 expected
- Revenues: $1.34 billion vs. $1.38 billion forecast
The pizza chain reported fourth-quarter net income of $155.7 million, or $4.25 per share, up from $151.9 million, or $3.85 per share, a year earlier. Analysts polled by Refinitiv expected earnings per share of $4.28.
Net sales It fell 1% to $1.34 billion, missing expectations of $1.38 billion. The company said currency fluctuations, an additional week in 2020, and advertising incentives from promotions contributed to the decline in revenue in the fourth quarter.
US store sales rose just 1% in the quarter, weighed down by the poor performance of Domino-owned restaurants. Analysts had expected same-store sales to grow 2.9%, according to StreetAccount estimates.
Outside the United States, the series’ performance has also disappointed. International store sales rose 1.8% in the quarter, below StreetAccount’s estimate of 6.6%.
Driving change
After stepping down as CEO, Allison will continue to serve as a consultant until July 15, when he officially retires. He plans to remain on the company’s board of directors until the annual shareholder meeting on April 26. Allison has been the CEO of the pizza chain since July 2018.
His successor, Winner, has worked for Domino’s since 2008, when he helped start the company’s turnaround plan as Marketing Director. He has served as Director of Operations and President of the United States since July 2020.
The company also announced that it has appointed Sandeep Reddy as its next Chief Financial Officer, effective April 1. Reddy is currently Six Flags’ chief financial officer, although he announced on Monday that he will be resigning on March 27. Same role for Guess.
Correction: Domino’s net sales fell 1% in the fourth quarter of 2021. An earlier version missed the change year after year.
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