Domino’s Pizza (DPZ), a pizza maker, has seen its stock dip by 8% in premarket trades, following the announcement of its fourth-quarter revenue figures. The figures fell short of the expectations of Wall Street analysts, as the company faced a decline in its delivery business.
The company reported a profit of $158.3 million, or $4.43 a share, for the fourth quarter, a slight increase from the $156.69 million or $4.25 a share reported in the same quarter of the previous year. The adjusted profit also totaled $4.43 a share in the latest quarter, surpassing the analyst estimate of $3.96 a share, according to estimates compiled by FactSet.
The company’s revenue for the fourth quarter increased to $1.39 billion, from $1.34 billion in the same quarter of the previous year, but was still lower than the analyst forecast of $1.44 billion.
Commenting on the results, Domino’s CEO Russell Weiner said, “We experienced significant pressure on our U.S. delivery business in 2022 and focused our efforts on creating solutions. We also drove continued momentum in our U.S. carryout business and achieved strong international store growth.”
Domino’s Pizza is one of the largest pizza delivery companies in the world, with more than 17,000 outlets in more than 85 countries. The company is well-known for its innovative approach to pizza delivery, with its “30 Minutes or Less” guarantee and its “Domino’s Tracker” feature, which allows customers to track their orders in real-time.
Despite its impressive global presence, Domino’s has had to face several challenges in recent years. In particular, the company has had to grapple with a decline in its delivery business due to the rise of third-party delivery services, such as Grubhub and DoorDash. Furthermore, the company has had to contend with the rising cost of ingredients and labor, as well as the increasing competition from other pizza delivery companies.
To address these challenges, Domino’s has implemented several strategies to boost its delivery business. In particular, the company has been focusing on improving its digital capabilities, such as its mobile app and website. Domino’s has also been investing in its delivery infrastructure, such as its “Pizza Portal” system, which allows customers to pick up their orders without having to wait in line. The company has also been experimenting with new menu items, such as its “Beyond Pizza” range, which includes plant-based options.
In addition, Domino’s has been actively expanding its presence in international markets. For example, the company recently opened its first store in India, and is planning to open more stores in the country in the coming years. The company has also been expanding its presence in other countries, such as China, Australia, and the United Kingdom.
Overall, Domino’s Pizza has had to face several challenges in recent years, but the company has been taking steps to address these issues. Through its innovative approach to pizza delivery, its focus on digital capabilities, and its international expansion, the company is well-positioned to remain a leader in the pizza delivery industry.
