Thursday October 8, 2020, 00:00:00
PZZA Possible Implications from Domino’s Lead to Updated Forecasts
Earlier today, Domino’s (DPZ; Buy, $403.46) reported a Q3 EPS miss relative to our expectations (and sell-side consensus). This miss was not caused by same-store sales trends, which came in above expectations for both the U.S. and International segments in Q3. Below the top line, multiple issues came into play, including spending related to the pandemic (such as higher pay for front-line employees, higher sick pay, and the need to buy more cleaning equipment), and what Domino’s described as all-time high cheese costs.
