Domino’s falls after missing earnings expectations in its first stuffed-crust quarter
Domino’s rose in early trading after reporting growing domestic sales since it’s rolled out stuffed crust, but has since given up those gains and is around 2% in mid-morning trading.
The company reported adjusted earnings per share of $3.81, less than the $3.94 analysts polled by FactSet were expecting, which it attributed to a $27.4 million loss in its Chinese subsidiary, DPC Dash, and a $12.1 million increase in tax expenses.
But the company reported domestic same-store sales growth of 3.4%, more than the 2% analysts were penciling in. Overall, revenue rose to $1.15 billion, in line with analyst expectations.
This comes after the company added stuffed crust to its menu in March. Domino’s CEO Russell Weiner touted in a statement that the company now has “all the major crust types.”
Weiner told analysts on an earnings call that “customer praise for this product has been significantly higher than any of our recent product launches.” The average purchase increased 1.4% from the addition of stuffed crust, which is an upcharge.
“So it’s not only driving deliciousness, the value is really good, but it’s also driving profit,” Weiner said.