Domino’s Pizza (DPZ) profits for the 4th quarter of 2021 are lost, CEO Ritch Allison will retire

An employee delivers an order to a customer at a Domino’s Pizza restaurant in Detroit.

Sean Proctor | Bloomberg | Getty Images

Domino’s Pizza announced on Tuesday the renewal of the C-suite and quarterly results that lost expectations in most measurements, driving the stock sharply lower.

The pizza chain posted earnings and revenue for the fourth quarter that was below analysts’ expectations and also announced that CEO Ritch Allison plans to retire. Chief Operating Officer and President of the United States, Russell Weiner, will succeed him as head of the company, from May 1.

The company’s shares fell up to 8% in pre-trade trading before offsetting losses.

See what the company said compared to what Wall Street expected, based on a survey by Refinitiv analysts:

  • Earnings per share: $ 4.25 versus $ 4.28 is expected
  • Income: $ 1.34 billion versus $ 1.38 billion expected

The pizza chain reported net income of $ 155.7 million for the fourth quarter, or $ 4.25 per share, up from $ 151.9 million, or $ 3.85 per share, a year earlier. Analysts surveyed by Refinitiv expected earnings per share of $ 4.28.

Net sales fell 1% to $ 1.34 billion, losing expectations for $ 1.38 billion. The company said that exchange rate fluctuations, an extra week in 2020 and advertising incentives from bids helped reduce fourth-quarter revenue.

Own store sales in the US increased by just 1% in the quarter, due to the low performance of Domino-owned restaurants. Analysts expected 2.9% increase in sales in the same stores in the US, according to StreetAccount estimates.

Outside the US, the chain’s performance has also been disappointing. International sales in the same stores increased 1.8% in the quarter, falling behind StreetAccount estimates by 6.6%.

Overthrow leadership

After resigning from the position of CEO, Allison will continue to serve as an advisor until July 15, when he will officially retire. He intends to remain on the company’s board of directors until the annual shareholders’ meeting on April 26. Allison has been the CEO of the pizza chain since July 2018.

His successor, Weiner, has been working for Domino’s since 2008, when he helped launch the company’s recovery plan as head of marketing. He has served as COO and President of the United States since July 2020.

The company also announced that it has selected Sandeep Reddy as its next CFO, effective April 1. Reddy is currently serving as Six Flags CFO, although he announced on Monday that he will resign on March 27. Prior to Six Flags, she served in the same role for Guess.

Correction: Domino’s net sales fell 1% in the fourth quarter of 2021. An earlier version incorrectly reported the change from year to year.

Domino’s Pizza (DPZ) profits for the 4th quarter of 2021 are lost, CEO Ritch Allison will retire

Source link Domino’s Pizza (DPZ) profits for the 4th quarter of 2021 are lost, CEO Ritch Allison will retire

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