Domino’s Pizza on Thursday reported mixed quarterly results as the pizza chain struggled with higher costs and an ongoing shortage of delivery drivers.
“I can assure you that nobody at Domino’s is happy with our recent performance,” CEO Russell Weiner told analysts on a conference call.
The Ann Arbor, Michigan-based company’s same-store sales fell at home and abroad during the second quarter. Sales in the U.S. have been hurt by some locations shortening their hours as a result of the driver shortage. To address customer service difficulties, roughly 40% of Domino’s U.S. restaurants are using call centers to take orders so their workers can focus on making and delivering pizzas.
Domino’s also said it expects food costs to keep rising and unfavorable foreign currency exchange rates to drag down its international revenue more than previously forecast.
Shares of Domino’s were up modestly in afternoon trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $2.82 vs. $2.91 expected
- Revenue: $1.07 billion vs. $1.05 billion expected
Net income in the three-month period ended June 19 was $102.5 million, or $2.82 per share, down from $116.6 million, or $3.06 per share, a year earlier.
Net sales rose 3.2% to $1.07 billion. Domino’s largely attributed the increase in sales to the higher food costs it’s charging franchisees. This quarter, operators paid 15.2% more than they did a year ago.