NASDAQ$DPZ

Domino's Pizza Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Domino's financial performance decreased due to a higher provision for income taxes and lower income from operations.

Domino's Pizza, Inc. announced mixed results for Q3 2022. Global retail sales growth (excluding foreign currency impact) was 4.7%. U.S. same store sales increased 2.0%, while international same store sales declined 1.8% (excluding foreign currency impact). Diluted EPS decreased 13.9% to $2.79.

  • Global retail sales growth (excluding foreign currency impact) increased by 4.7%.
  • U.S. same store sales increased by 2.0%.
  • International same store sales decreased 1.8% (excluding foreign currency impact).
  • Diluted EPS decreased 13.9% to $2.79.

Headline financials

Total Revenue

$1.07B

Previous: $998M+7.1%
EPS (adj)

$2.79

Previous: $3.24-13.9%
Global Retail Sales Growth ex-FX

4.7%

Previous: 8.5%-44.7%
U.S. Retail Sales Growth ex-FX

4.1%

No prior period
International Retail Sales Growth ex-FX

5.2%

No prior period
U.S. SSS Growth

2.0%

Previous: -1.9%+205.3%
International SSS Growth

-1.8%

Previous: 8.8%-120.5%
Capital Expenditures

-$50.5M

Previous: -$50.7M+0.3%
Free Cash Flow

$50M

Previous: $69.8M-28.3%
Net Income

$101M

Previous: $120M-16.5%
Operating Income

$176M

Previous: $180M-2.1%
Gross Profit

$382M

Previous: $385M-0.9%
Cash & Equivalents

$115M

Previous: $295M-61.1%
Total Assets

$1.65B

Previous: $1.76B-6.7%
R&D Expense

$0.00

Previous: $0.00

Revenue & EPS history

Domino's · Revenue · Quarterly

$1.07B

Q3 2022+7.1%vs Q3 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Domino's · $1.07B total across 5 segments · Q3 2022

  • Supply Chain
    $646M+9.7%
  • U.S. Franchise Royalties & Fees
    $129M+6.0%
  • U.S. Franchise Advertising
    $114M+5.2%
  • U.S. Company-owned Stores
    $112M+3.7%
  • International Franchise Royalties
    $67.1M-5.0%

Forward guidance

Domino's provided updates on its fiscal 2022 guidance, reaffirming its food basket pricing guidance and updating the impact of foreign currency exchange rates on international franchise royalty revenues, capital expenditures, and general and administrative expense.

Tailwinds

  • Reaffirmed fiscal 2022 guidance for food basket pricing increase vs. 2021 of 13.0% - 15.0%.
  • Expect to record a gain on the sale of 114 U.S. Company-owned stores in the fourth quarter of 2022.
  • The Company’s Board of Directors declared a $1.10 per share quarterly dividend on its outstanding common stock.
  • Sequential improvements were made during the third quarter.
  • Delivered around one out of every three pizzas in the United States before the pandemic, and we deliver around one out of every three pizzas today.

Headwinds

  • Increased expected negative impact of changes in foreign currency exchange rates on royalty revenues vs. 2021 from $22.0 - $26.0 million to $29.0 - $31.0 million.
  • Lowered capital expenditures guidance from $120.0 million to $100.0 million.
  • Reduced general and administrative expense guidance from $420.0 - $428.0 million to $415.0 - $420.0 million.
  • The decline in international same store sales (excluding foreign currency impact) was driven in part by a value added tax holiday in the United Kingdom in the third quarter of 2021 that did not recur in the third quarter of 2022.
  • Net Income decreased $19.9 million, or 16.5%, in the third quarter of 2022 as compared to the third quarter of 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.8%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.0%

Avg return

30 days after

55%

36 / 66 earnings

Positive

+25.2%

Q4 2019

Best reaction

-14.6%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.8%-8.2%-15.2%
Q4 2025+5.0%+4.7%-5.7%
Q3 2025+4.0%+2.0%+0.1%
Q2 2025+1.1%-0.4%-2.5%
Q1 2025+0.6%-0.6%-0.9%
Q4 2024-1.5%+5.9%+1.0%
Q3 2024+4.0%+3.4%+11.3%
Q2 2024-14.6%-10.6%-6.4%
Q1 2024+6.1%+3.1%+2.2%
Q4 2023+2.9%+3.1%+13.5%
Q3 2023-2.0%-1.0%+6.9%
Q2 2023+3.0%+4.0%-0.7%
Q1 2023-6.4%-8.1%-11.6%
Q4 2022-14.6%-15.6%-10.6%
Q3 2022+5.2%+9.0%+21.5%
Q2 2022-2.8%-5.9%-1.4%
Q1 2022-9.4%-7.8%-1.9%
Q4 2021-2.1%-4.3%-5.8%
Q3 2021-4.5%-2.3%+7.8%
Q2 2021+11.7%+14.4%+8.3%
Q1 2021+4.6%+7.4%+5.7%
Q4 2020-5.0%-5.9%+2.0%
Q3 2020-9.3%-5.4%-7.2%
Q2 2020-5.7%-6.3%-3.6%
Q1 2020-4.3%-7.2%-3.0%
Q4 2019+25.2%+24.1%+1.0%
Q3 2019+2.5%+6.4%+16.7%
Q2 2019-6.3%-4.4%-13.7%
Q1 2019+2.3%-0.5%+4.6%
Q4 2018-6.4%-9.2%-14.1%
Q3 2018-1.9%-1.9%-4.9%
Q2 2018-2.3%-7.3%+0.5%
Q1 2018+6.4%+6.1%+7.2%
Q4 2017+4.4%+3.7%+2.6%
Q3 2017-7.8%-8.1%-17.2%
Q2 2017-12.9%-14.4%-14.3%
Q1 2017+0.2%+1.9%+14.4%
Q4 2016+1.1%+2.0%-0.7%
Q3 2016+8.6%+9.4%+6.3%
Q2 2016+8.7%+6.7%+7.6%
Q1 2016-9.5%
Q4 2015+14.3%
Q3 2015-2.5%
Q2 2015-7.2%
Q1 2015+14.2%
Q4 2014-0.5%
Q3 2014+10.5%
Q2 2014+2.8%
Q1 2014-1.9%
Q4 2013+4.0%
Q3 2013-3.2%
Q2 2013-4.1%
Q1 2013+3.2%
Q4 2012+3.1%
Q3 2012+7.7%
Q2 2012+4.3%
Q1 2012-11.5%
Q4 2011+14.7%
Q3 2011+11.3%
Q2 2011+3.9%
Q1 2011+14.3%
Q4 2010+0.4%
Q3 2010+6.6%
Q2 2010-3.4%
Q1 2010-11.1%
Q4 2009+10.4%

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