Invest2Growcom
Oct 13, 6:22 PM
$DPZ DPZ is lower, near 298.50, down about 3.93 percent, even though Domino's beat on Q3 results.
The issue is sales momentum. U.S. same store sales rose just 0.3 percent and international rose 0.2 percent, and the CFO expects international same store sales to stay roughly flat for the year.
That follows 0.9 percent in Q1 and 0.1 percent in Q2 in the U.S., a long way from the 3 percent full year pace the company projected earlier this year.
There were positives. Operating income rose 8.3 percent, global retail sales grew 3.2 percent, and Domino's added 175 net new stores, mostly overseas.
So the market is weighing profit and store growth against a stalled same store sales trend, and today the second part is winning.
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