Domino's Pizza CFO announces new $1 billion share buyback program

Domino's misses sales, profits estimates as delivery competition heats up

Domino's misses sales, profits estimates as delivery competition heats up

During the third quarter of 2019, the Company repurchased and retired 384,338 shares of its common stock under its Board of Directors-approved share repurchase program for approximately $93.7 million, or an average price of $243.79 per share. Worldwide same-store sales were up 1.7%, but also missed forecasts of 2.9% growth. Argus dropped their price target on shares of Domino's Pizza from $310.00 to $280.00 and set a buy rating for the company in a research note on Wednesday, July 17th.

Looking ahead, Domino's sees global retail sales growing 7 percent to 10 percent over the next two to three years and 8 percent to 12 percent over the next three to five years.

"It was a good quarter for Domino's as we continue to lean on our fundamental strength against a unique competitive environment", CEO Ritch Allison said in a news release, citing strong unit growth and positive same-store sales.

The pizza chain, one of the modern faces of pizza delivery, faces competition from the aggressive promotions and wider range of food offered by aggregators such as Uber Eats, Postmates and GrubHub. US same store sales grew 2.4% during the quarter versus the prior year quarter, continuing the positive sales momentum in the Company's USA business.

It said it now expects same-store sales at its United States stores to rise 2 percent to 5 percent and its global segment to grow 1 percent to 4 percent in two to three years, compared with a previous 3 percent to 6 percent growth at either segment over three to five years.

The slowing growth has anxious Wall Street, which has sent Domino's stock down 13% over the past year.

Dog ownership linked with longer life, especially for heart patients
Those who had suffered cardiovascular-related issues were also 31 per cent less likely to pass away. Dog owners can take heart from new research about the possible health benefits of having a dog.

But executives this year have also acknowledged that third-party delivery services have played a role in the softening results of late.

Domino's said on Tuesday that its same-store sales last quarter entirely from ticket growth, and that it was weakest in its delivery business, a sign that third-party delivery and fortressing are eating into sales. Carryout now represents 45% of the company's sales, and Allison noted that the carryout segment overall is "significantly larger than the delivery segment".

USA same-store sales grew 2.4%, which was below analysts' projections of a 2.8% increase.

Analysts expecting growth of 2.8% in the key retail sales metric.

Domino's on Tuesday reported $820.8 million in revenue for its fiscal third quarter ended September 8, up about 4% compared with a year ago but weaker than predictions from Wall Street analysts, according to FactSet.

Currently, this company's share volume is sitting at $2,012,171, but has maintained average daily volume of $936.50K.

Recommended News

  • Twitter says it used your 2FA info to advertise by accident

    Twitter says it used your 2FA info to advertise by accident

    A Twitter security feature may've wound up costing people their data privacy , the company said in a statement Tuesday. Infosec professionals warned that it could lead people to distrust and ultimately abandon 2FA security on accounts.
    Eagles announce the 2020 Hotel California tour

    Eagles announce the 2020 Hotel California tour

    Hotel California is the third best-selling USA album in history, certified 26-times Platinum by the RIAA. After an intermission, they'll return with an entire additional set of the band's other greatest hits .

    Three STDs reach record high in US

    About 35,000 cases of the most contagious forms of the disease were reported - also the most since 1991. The increases coincided with public health funding cuts and clinic closures.
  • Arsene Wenger Reveals He Turned Down Premier League Offers After Leaving Arsenal

    Arsene Wenger Reveals He Turned Down Premier League Offers After Leaving Arsenal

    Sir Alex Ferguson hailed Arsene Wenger as "an absolute legend" as the former Arsenal boss enjoyed a special night in his honour. Arsene Wenger said he turned down opportunities to manage in the Premier League due to his allegiance to Arsenal .
    'Not the whole enchilada': USA  inks limited trade deal with Japan

    'Not the whole enchilada': USA inks limited trade deal with Japan

    And last week, the United States levied new tariffs on billions of European Union imports, such as Scotch whisky. While the deal promises success for American farmers, the deal doesn't resolve auto trade issues with Japan.
    Bernie Sanders' daughter-in-law dies at 46 after cancer diagnosis

    Bernie Sanders' daughter-in-law dies at 46 after cancer diagnosis

    She wanted them to be told how much she loves them and that she was "so sorry that she got sick", her obituary further stated. Sanders said that in the last month or two he was more tired than usual and "I should have listened to those symptoms".
  • Na outlasts Cantlay in playoff to win US PGA Las Vegas title

    Na outlasts Cantlay in playoff to win US PGA Las Vegas title

    Defending champion Bryson DeChambeau (68) sits back in a tie for 21st at 8 under in a group that includes Phil Mickelson (69). He bounced back from a bogey at the eighth with a birdie at the ninth, where he got up and down from a greenside bunker.
    City Girls' JT Is Finally Free

    City Girls' JT Is Finally Free

    Her group mate Yung Miami was more than ecstatic to share the news. "You b*tches could neva", she stated in the caption. Since then Yung Miami has been holding it down on the records and videos.

    Dog at home means longer life, better heart health

    Martha Gulati, who is the editor-in-chief of CardioSmart.org, the American College of Cardiology's patient education platform. Part of the benefit is likely due to the physical activity that comes with having a dog , Kramer said.
  • Larson ends two-year skid with Dover playoff win

    Larson ends two-year skid with Dover playoff win

    Larson counted 92 races in 2011 and 123 races in 2012 and continued to race in the dirt even when he landed his ride with Ganassi. Stewart in turn guaranteed Larson, who is half Japanese, would be the next big thing in NASCAR.
    Effects Of Global Economic Slowdown

    Effects Of Global Economic Slowdown "More Pronounced" In India

    The global economy is now in a synchronized slowdown. "Global trade growth has come to a near standstill", she said. The situation is a stark contrast from two years ago, before the U.S.
    Pilots sue Boeing for $100m over claims 737 Max was unsafe

    Pilots sue Boeing for $100m over claims 737 Max was unsafe

    Boeing has said there was no breakdown in the design, testing and Federal Aviation Administration approval of the Max. Southwest has said it would take about 45 days after the ban is lifted to have the Max ready to fly.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.