Domino's Pizza (DPZ) Misses Q3 EPS by 22c, Revenues Beat

Domino's Pizza (NYSE: DPZ) reported Q3 EPS of $2.49, $0.22 worse than the analyst estimate of $2.71. Revenue for the quarter came in at $967.72 million versus the consensus estimate of $943.77 million.

"I am extremely proud of our global franchisees, operators and corporate teams for their relentless passion and energy as we continue to navigate through the pandemic," said Ritch Allison, Domino's Chief Executive Officer. "Our strong third quarter results once again demonstrated our focus on value, service, quality and innovation to meet customer needs."

• Revenues increased $146.9 million, or 17.9%, in the third quarter of 2020. This increase was primarily due to higher U.S. retail sales resulting from same store sales growth and an increase in store counts during the trailing four quarters, resulting in higher supply chain, U.S. franchise and U.S. Company-owned stores revenues.
• Net Income increased $12.8 million, or 14.8%, in the third quarter of 2020. This increase was primarily driven by higher income from operations resulting from increased U.S. franchise revenues as well as higher supply chain volumes, partially offset by higher variable performance-based compensation expense as well as COVID-related costs, including additional compensation and enhanced sick pay for frontline workers. A lower effective tax rate as compared to the prior year quarter driven by higher tax benefits from equity-based compensation also resulted in an increase in net income. The increase in net income was partially offset by higher net interest expense resulting from a higher average debt balance and to a lesser extent, borrowings under the Company\'s variable funding notes.
• Diluted EPS was $2.49 for the third quarter of 2020 versus $2.05 in the prior year quarter. This represents a $0.44, or 21.5%, increase over the prior year quarter. The increase in diluted EPS was driven by higher net income, as well as a lower weighted average diluted share count, primarily resulting from the Company\'s share repurchases during the trailing four quarters.

For earnings history and earnings-related data on Domino's Pizza (DPZ) click here.

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