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Sep 11, 2022
Domino's Q3 2022 Earnings Report
Domino's financial performance decreased due to a higher provision for income taxes and lower income from operations.
Key Takeaways
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.
Domino's
Domino's
Domino's Revenue by Segment
Domino's Revenue by Geographic Location
Revenue by Segment
U.S. Company-owned stores Revenue
CapyFin.comU.S. Franchise royalties Revenue
CapyFin.comSupply Chain Revenue
CapyFin.comInternational franchise Revenue
CapyFin.comU.S. Franchise advertising Revenue
CapyFin.comRevenue by Geographic Location
U.S. stores Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income