Domino's Pizza reported higher fiscal fourth-quarter results year over year, but the results underscored a shortfall against market expectations as the growth in same-store sales in the US showed signs of deceleration. The pizza restaurant chain announced a net income of $4.89 per share for the quarter ending December 29, which reflects an increase from $4.48 in the previous year.
However, this fell below the consensus estimate of $4.93 provided by FactSet. Revenue for the quarter increased by 2.9%, totaling $1.44 billion but still missed market projections of $1.48 billion. Following the announcement, the stock saw a decline of 4.4% in premarket trading. The company attributed its revenue growth to higher contributions from its supply chain and franchise advertising within the US.
Notably, supply chain revenue was positively impacted by a 4.4% rise in food basket pricing to stores, alongside increased order volumes. Same-store sales in the US grew by only 0.4%, a significant decrease from the 2.8% increase recorded in the prior year's quarter. Conversely, international same-store sales, adjusted for foreign exchange, increased by 2.7%, a notable recovery from the mere 0.1% rise logged a year earlier.
In a statement, Chief Executive Russell Weiner highlighted the success of their international business, stating, 'We delivered a remarkable 31st consecutive year of same-store sales growth, with our sales improving in the fourth quarter.' He emphasized the importance of the company's focus on value in the US market, asserting that this strategy enabled substantial market share growth in the quick-service restaurant sector, particularly in the pizza segment.
In terms of expansion, Domino's reported a net addition of 364 stores during the quarter, which comprised 84 openings in the United States and 280 branches internationally. Global retail sales saw a rise of 4.4%, excluding any impacts from foreign currency fluctuations. Weiner conveyed optimism regarding Domino's strategies moving forward, stating, 'Our hungry for more strategy can drive strong order count growth, even in the face of a challenging global macroeconomic environment.' As the company looks towards 2025, he expressed confidence in Domino's ability to continue winning and expanding market share.
Furthermore, the board of directors approved a 15% increase in the quarterly dividend to $1.74 per share, which is set to be paid on March 28 to shareholders recorded as of March 14..