Domino’s Pizza (DPZ) and Papa John’s (PZZA) report outcomes

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Domino’s Pizza And papa johns both fell in premarket trading after reporting mixed gains Thursday morning.

Domino’s missed analyst estimates for US sales and total revenue for the quarter. Domino’s also lowered its outlook. Papa John’s posted lower-than-expected sales in North America.

Both pizza companies recently hiked prices to offset rising food, transportation and labor costs. Domino’s reported faltering demand amid a national driver shortage. Last October, Domino executives announced that factories would increase prices by about 7% in the fourth quarter, including raising the mix and match deal from $5.99 to $6.99.

Here’s how Domino’s has fared compared to analysts’ estimates, according to Refinitiv:

  • Revenue: $1.39 billion versus $1.44 billion expected
  • Adjusted earnings per share: $3.97 versus $3.94 expected

The Michigan-based company said U.S. sales rose 0.9%, well below analyst estimates of 3.4%, according to estimates compiled by StreetAccount. That was down 0.8% for fiscal 2022.

The company’s US-owned stores reported sales of $117 million, beating StreetAcount’s estimate of $129.3 million.

The company cut its two- to three-year sales guidance to 4% to 8% growth from 6% to 10%, citing macroeconomic headwinds weighing on its domestic supply business.

Revenue increased 3.6% in the fourth quarter of 2022 compared to the same period last year, citing higher supply chain revenue as a result of higher basket prices for stores.

This month, Domino’s launched three flavors of loaded potato dumplings that some analysts believe could boost sales.

“We experienced significant pressure on our US delivery business in 2022 and focused our efforts on developing solutions,” said CEO Russell Weiner. “We also continued to advance our US carryout business and delivered strong international store growth.”

Papa John’s pizza delivery bikes were parked in front of his London branch.

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Papa John’s fourth-quarter results beat Wall Street’s expectations. Total revenue fell less than 1% from the company’s record quarter last year. Revenue would have been up 3% had it not been for strategic refranchising of dozens of restaurants.

Here’s how Papa John’s compared to analyst estimates, according to Refinitiv:

  • Revenue: $526.2 million versus $523.8 million expected
  • Adjusted earnings per share: $0.71 vs. $0.66 expected

The Louisville-based company missed estimates for North American on-site restaurant sales, reporting revenue of $172.2 million versus an expected $172.7 million, according to estimates compiled by StreetAccount. Comparable sales in North America increased 1% year-over-year.

The company expects comparable sales in North America to grow between 2% and 4% annually, according to executives. For 2023, it expects growth at the lower end of that range, they added.

Both Domino’s and Papa John’s win come after stronger than expected wins MC Donalds And Yummy! Brandsboth of which beat quarterly earnings and revenue estimates this quarter.

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