Domino’s Pizza saw its shares climb in early trading after the pizza chain released fourth-quarter results that showed stronger-than-expected U.S. comparable-store sales.
In premarket activity on Monday, Domino’s stock increased 4.8%, reaching $403.04. The move followed the company’s report that U.S. same-store sales rose 3.7% for the quarter, exceeding analyst projections of 3.47% compiled by LSEG.
Company commentary attributed the stronger U.S. performance to demand driven by value-oriented promotions and recent menu innovations. These factors supported sales growth in the domestic business segment and outperformed the modest analyst forecast.
By contrast, international same-store sales increased by 0.7% during the quarter, a result that fell short of the 1.03% gain anticipated by analysts. The company identified weaker demand and intense competition in certain markets, noting specific pressures in regions including Australia and Japan.
On the profitability front, Domino’s reported fourth-quarter earnings per share of $5.35, up from $4.89 in the prior-year period. That figure was slightly below analyst estimates of $5.37.
Over the last 12 months, shares of Domino’s have declined 15.6%.
Market reaction was led by the better-than-expected U.S. comparable-sales result and corresponding commentary around promotional activity and menu initiatives. However, the underperformance abroad and an EPS outcome that narrowly missed estimates temper the overall picture.
Investors and market observers will likely weigh the domestic momentum against international headwinds and the modest EPS shortfall as they assess near-term outlook and stock positioning.
Below are the key takeaways and potential areas of uncertainty highlighted by the results.