Shares of Domino's Pizza, the world's largest pizza chain based on sales, fell on Tuesday as it reported that second-quarter net income exceeded estimates but revenue missed expectations.Net income rose 19% to $92.4 million, or $2.19 a share, from $77.4 million, or $1.78, in the year-earlier period, versus analyst estimates for EPS of $2.02, according to FactSet. Global revenue at the Ann Arbor, Mich., company rose 4.1% to $811.6 million from $779.4 million, however, compared to analyst estimates of $836.6 million. Source Thestreet.
CEO Richard Allison is quoted as saying
"We gained a significant amount of market share in the pizza category in Q2, Our unit growth was quite positive. It's a tougher operating environment than in years past and we have new competitors.There are labor pressures currently.Our franchisees are really healthy and we are focused on their profitability.We are positioned quite well relative to the restaurant industry.We still have a very healthy business model.We are gaining share at a significant pace in the International markets."
AVERAGE ANALYSTS PRICE TARGET $305
AVERAGE ANALYSTS RECOMMENDATION OVERWEIGHT
P/E RATIO 29
SHORT INTEREST 6.2%
COMPANY PROFILE
Domino's Pizza, Inc. is a pizza company, which operates a network of company-owned and franchise-owned stores in the U.S. and international markets. It operates though the following three segments: U.S. Stores, International Franchise and Supply Chain. The U.S. Stores segment consists primarily of franchise operations. The International Franchise segment comprises of a network of franchised stores. The Supply Chain segment operates regional dough manufacturing and food supply chain centers. The company was founded by James Monaghan and Thomas Stephen Monaghan in 1960 and is headquartered in Ann Arbor, MI.
CEO Richard Allison is quoted as saying
"We gained a significant amount of market share in the pizza category in Q2, Our unit growth was quite positive. It's a tougher operating environment than in years past and we have new competitors.There are labor pressures currently.Our franchisees are really healthy and we are focused on their profitability.We are positioned quite well relative to the restaurant industry.We still have a very healthy business model.We are gaining share at a significant pace in the International markets."
AVERAGE ANALYSTS PRICE TARGET $305
AVERAGE ANALYSTS RECOMMENDATION OVERWEIGHT
P/E RATIO 29
SHORT INTEREST 6.2%
COMPANY PROFILE
Domino's Pizza, Inc. is a pizza company, which operates a network of company-owned and franchise-owned stores in the U.S. and international markets. It operates though the following three segments: U.S. Stores, International Franchise and Supply Chain. The U.S. Stores segment consists primarily of franchise operations. The International Franchise segment comprises of a network of franchised stores. The Supply Chain segment operates regional dough manufacturing and food supply chain centers. The company was founded by James Monaghan and Thomas Stephen Monaghan in 1960 and is headquartered in Ann Arbor, MI.