Domino's Pizza Misses Estimates as Competition From Reopened Restaurants Intensifies

Reuters  |

Image: Domino's Pizza, Eugene, Orgeon. Source: Domino's Pizza

(Reuters) - Domino’s Pizza Inc missed estimates for quarterly revenue on Thursday, as the pizza chain faced stiff competition from rival fast-food chains and restaurants that reopened after the easing of some COVID-19 curbs.

Shares of the company were down 3% in premarket trading.

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Analysts have raised concerns over the ability of pizza chains, including Domino’s, to keep up heightened sales levels seen during the lockdowns in a post-pandemic world, as more dine-in restaurants open up and compete for customers.

Sales at Domino’s U.S. stores open for more than a year rose 11.2%, missing market estimates of 12.48%, according to Refinitiv IBES data.

Net income rose to $151.9 million, or $3.85 per share, from $129.3 million, or $3.12 per share, a year earlier.

Total revenue rose to $1.36 billion from $1.15 billion in the fourth quarter ended Jan. 3, compared with analysts’ estimates of $1.39 billion.

Reporting by Praveen Paramasivam in Bengaluru; Editing by Ramakrishnan M.

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Source: Reuters

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