Domino's and Papa John's shares sink after pizza chains report soft sales figures, outlook

Domino's Pizza and Papa John's some fell successful pre-market trading aft reporting mixed net connected Thursday morning.

Domino's missed expert estimates connected U.S. same-store income and full gross for the quarter. Domino's besides lowered its outlook. Papa John's posted softer-than-expected North America sales.

Both pizza companies person raised prices precocious to offset rising food, proscription and labour costs. Domino's reported wavering request amid a nationalist operator shortage. Last October, Domino's executives announced plants to rise prices astir 7% successful the 4th quarter, including spiking its Mix & Match woody from $5.99 to $6.99.

Here's however Domino's did, compared to analysts' estimates, according to Refinitiv:

• Revenue: $1.39 cardinal vs. $1.44 cardinal expected
• Adjusted net per share: $3.97 vs. $3.94 expected

The Michigan-based institution said U.S. same-store income accrued 0.9%, coming successful overmuch little than expert estimates of 3.4%, according to estimates compiled by StreetAccount. This was a 0.8% diminution for fiscal twelvemonth 2022.

U.S. company-owned stores reported revenues of $117 million, falling abbreviated of StreetAcount estimates of $129.3 million.

The institution chopped its two-to-three-year income outlook to a scope of 4% to 8% maturation from 6% to 10%, citing macroeconomic headwinds weighing down connected its home transportation business.

Revenue grew 3.6% successful the 4th fourth of 2022 compared to the year-earlier period, citing higher proviso concatenation revenues arsenic a effect of increases successful marketplace handbasket pricing to stores.

This month, Domino's launched loaded murphy tots with 3 flavors, which immoderate analysts deliberation could rise sales.

"We experienced important unit connected our U.S. transportation concern successful 2022 and focused our efforts connected creating solutions," said CEO Russell Weiner. "We besides drove continued momentum successful our U.S. carryout concern and achieved beardown planetary store growth."

Papa John's 4th fourth results topped Wall Street's expectation. Total gross was down little than 1% from the company's grounds 4th fourth past year.

Here's however Papa John's did, compared to analysts' estimates, according to Refinitiv:

• Revenue: $526.2 cardinal vs. $523.8 cardinal expected
• Adjusted net per share: $0.71 vs. $0.66 expected

The Louisville-based institution missed estimates connected North American company-owned edifice sales, reporting revenues of $172.2 cardinal versus an expected $172.7 million, according to estimates compiled by StreetAccount. North America comparable income were up 1% from a twelvemonth ago.

The institution said it expects North America comparable income to turn annually betwixt 2% and 4%, according to executives. For 2023, it expects maturation to travel successful connected the little extremity of that range, they added.

Both Domino's and Papa John's net travel aft stronger than expected net astatine McDonald's and Yum! Brands, some of which bushed quarterly net and gross estimates this quarter.