Joe Jordan succeeds Russell Weiner as Domino’s chief executive
Domino’s Pizza on Tuesday reported third-quarter results that showed a continued deceleration in its U.S. business. Same-store sales growth in the United States fell to 0.3% in the third quarter from 5.2% in the same period a year earlier.
The pizza chain’s profit climbed to $152.2 million, or $4.60 a share, from $139.3 million, or $4.08 a share, a year earlier. The result beat the $4.36-per-share consensus that analysts polled by FactSet had projected.
Revenue rose to $1.19 billion from $1.15 billion a year earlier. The company attributed the growth to higher order volumes, food basket pricing to stores, and global franchise royalties.
The 0.3% U.S. same-store sales figure breaks into a 1% gain at company-owned stores and a 0.3% gain at franchised locations. International same-store sales rose 0.2%.
Global retail sales growth slowed to 3.2% during the quarter, down from 6.3% a year prior. Total global retail sales reached $4.84 billion, up from $4.7 billion.
The financial report is the first released under Joe Jordan, who succeeded Russell Weiner as chief executive this month. Jordan previously served as Domino’s chief operating officer.
“As I step into the CEO role, I am honored to lead Domino’s and build on the competitive advantages that have long set us apart: our iconic brand, best-in-class franchise system, global scale and proven operating capabilities,” Jordan said. “Our opportunity now is to capitalize on those strengths by getting even closer to our customers, helping our franchisees grow their profitability and turning our best performance into our everyday performance.”
The deceleration places Jordan at the helm of the chain at a moment when growth in its core U.S. market has cooled to near-flat levels, even as profit and revenue continue to expand on the strength of pricing and franchise income.