Domino’s Pizza (NYSE: DPZ) released their Q4 2019 earnings, beating estimates and showing strong same store sales growth driving the stock up big in pre-market trading.
The largest pizza company in the world based on global retail sales posted revenues for the quarter of $1.15 billion which came in above consensus estimates of $1.128 billion.
Revenue growth for the company was strong, with the top line growing 7.6% compared to the same quarter the previous year.
One of the focuses for the pizza maker is growth in same store sales, especially in the U.S. as Domino’s attempts to fight off competition from the proliferation of meal delivery startups including UberEats, DoorDash, Postmates, GrubHub and others. For the quarter, Domino’s grew U.S. same store sales by 3.4%, while International same store sales grew 1.7%.
On the bottom line, Domino’s reported earnings of $3.12 per share which beat/missed Wall Street estimates of $2.97 per share.
In recent years, Domino’s has been particularly focused on adding technological solutions to improve efficiency and service, with efforts underway to identify opportunities in autonomous driving and artificial intelligence. The company has also put a strong emphasis on digital marketing and distribution solutions with more than 65% of its orders coming from digital channels.
Investors have seemed to appreciate Domino’s focus on innovation. Domino’s stock has performed extremely well in recent years, beating out even fast food behemoth McDonald’s (NYSE: MCD).
Thus far in 2020 Domino’s stock has been close to flat, growing only 0.7% year to date, recovering from a downslide early in the year. After releasing earnings the stock was up 11% in pre-market trading as of the time of publishing.
The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Grizzle hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.