Domino’s Q4 Results vs. Expectations
In the Domino’s Pizza Q4 earnings report, the company reported a total revenue of $1.36 billion, falling short of analyst expectations which had predicted $1.39 billion. The total revenue the company earned still translates to an increase of business of $206.2 million or about 17.9%. The pizza company also disappointed on earnings as well, only reporting $3.46 of earnings per share while analysts had projected the business to reach earnings of $3.89 per share. Again, while disappointing many, the company increased its earnings per share by $0.73 from the same quarter last year, translating to a growth of about 23.4%.
Net income also grew for the business reaching $151.9 million. This figure is an increase of $22.6 million from the same quarter last year, or 17.5% growth.
The food delivery business as a whole has certainly grown over the past year due to the COVID-19 pandemic. This trend may have slightly impacted the pizza business, with many companies that had previously not offered delivery entering the game. As a result of new competition in the market, sales growth slowed for Domino’s Pizza alongside its competitors.
Domino’s Future Outlooks and Stock Market Reaction
Domino’s Pizza also released guidance on the following two to three fiscal years. The company stated that its business is projected to grow anywhere between 6% to 10%. These conservative projections, along with the already disappointing Q4 earnings results led many investors to drop the company stock in early morning trading. In fact, the company has seen its shares drop by over 6.5% so far today.
In a statement released alongside the Q4 report, CEO of the business, Ritch Allison, said, “We celebrated our 60th year as a company in 2020, and while it was a challenging year in so many ways, it was also a year that saw the Domino's brand rise to the occasion all over the world. We led with our values first and delivered an outstanding year of growth and financial performance. This past year, a year like none other, reminded me once again that Domino's has the best group of global franchisees and team members in the restaurant business.”
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.