Domino’s Pizza delivers world gross sales progress, cuts expense forecasts (NYSE:DPZ)

Domino’s Pizza (NYSE:DPZ) led the S&P greater on Thursday after posting robust sequential gross sales progress in a Q3 earnings report.

For the third quarter, the Michigan-based pizza chain posted combined outcomes on EPS and income. Diluted EPS decreased 13.9% from the prior yr to $2.79 whereas $1.07B in income was recorded. Analysts had anticipated $2.98 and $1.07B, respectively. Nonetheless, a 2% acquire in U.S. identical retailer gross sales, a distinction to a 3.6% decline within the prior quarter, appeared to garner market consideration. World retail gross sales rose 4.7% from the prior yr.

“I am inspired with our efficiency and the sequential enhancements we made throughout the third quarter,” CEO Russell Weiner stated. “As we start the fourth quarter, I consider Domino’s is poised to emerge from these risky occasions stronger than ever. We delivered round one out of each three pizzas in the US earlier than the pandemic, and we ship round one out of each three pizzas at this time. Mixed with our robust carryout enterprise the place we now have continued to speed up our momentum, I’ve by no means been extra assured in the way forward for Domino’s Pizza.”

Elsewhere, the pizza chain reduce its full yr capital expenditure forecast to $100M from a previous $120M and Basic and administrative bills from a variety of $420M to $428M to $415M to $420M. A meals basket pricing improve of 13% to fifteen% was maintained within the steering.

Shares of Domino’s Pizza (DPZ) rose 10.48% in afternoon buying and selling on Thursday because the market roared again from early losses. By noon, the Dow had run to a 600 level acquire after starting the day down almost 500 factors.

Dig into the main points of the outcomes.