ANN ARBOR, Mich. - Domino's Pizza Inc. (NYSE: NYSE:DPZ), the world's largest pizza company, reported fourth-quarter earnings that exceeded Wall Street's expectations, sending its shares up 2.29% in premarket trading.
The company's adjusted earnings per share (EPS) came in at $4.48, surpassing the analyst estimate of $4.38. However, revenue fell slightly short of expectations, coming in at $1.4 billion compared to the consensus estimate of $1.42 billion.
The company's strong performance is attributed to its "Hungry for MORE" strategy, which CEO Russell Weiner said is delivering results, as evidenced by positive U.S. transactions and same-store sales growth in both delivery and carryout channels.
Weiner's confidence in the brand's strength and momentum is reflected in the company's optimistic long-term guidance, which includes expectations of 7%+ annual global retail sales growth, 1,100+ annual global net store growth, and 8%+ annual income from operations growth.
For the fourth quarter, Domino's reported a 4.9% increase in global retail sales growth (excluding foreign currency impact), with U.S. same-store sales growing by 2.8% and international same-store sales inching up by 0.1% (excluding foreign currency impact). The overall income from operations for the quarter was up 3.4%, marking a solid end to the fiscal year.
In addition to its earnings, Domino's announced a 25% increase in its quarterly dividend to $1.51 per share and approved an additional $1.0 billion share repurchase program, signaling confidence in its financial health and commitment to returning value to shareholders.
Looking ahead, Domino's continues to expect to achieve robust growth metrics over the next five years, as announced during its Investor Day on December 7, 2023. These targets are set despite the company's slight revenue miss for the quarter and are indicative of management's belief in the company's strategic direction and growth potential.
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