The pizza supply chain stated third-quarter revenue up from the year-in the past length.
Domino Pizza Inc. acknowledges the harsh fight for the hearts and stomachs of the pizza-eating population however it doesn’t believe direct competition contains the “take-and-bake” choices from the grocery store freezer.
“[M]y view on frozen pizza particularly has handiest always been that i believe frozen pizza, despite how they are attempting to place themselves, tends to just cannibalize other frozen food, as opposed to cannibalizing the fresh-pizza category,” Domino’s DPZ, +5.ninety% Chief executive J. Patrick Doyle stated. “another sale of frozen pizza is one much less sale of frozen lasagna.”
Domino’s shares rose some 6% in Tuesday afternoon buying and selling after the pizza supply chain mentioned 1/3-quarter cash per share of ninety six cents, up from 67 cents for the same period ultimate year and beating the FactSet consensus of 90 cents.
comparable-restaurant gross sales increase for all home stores, both firm-owned and franchise, used to be 13%. global same-restaurant gross sales boom, except for foreign money impression, used to be 6.6%.
See additionally: Domino’s Pizza profit boosted with the aid of sturdy gross sales
“I suppose anyone who is feeding anyone in the U.S. is competitors,” Doyle stated as part of the Tuesday income name, in line with a FactSet transcript.
“[D]uring the time while you saw various boom in frozen, we just couldn’t see that it was once immediately affecting us,” he brought.
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Doyle estimated the growth in the pizza category at “1% or 2%,” which he calls “modest.” greater than anything else, he said, there’s a shift in “share good points.” There are quite a lot of different pizza options that don’t come from the grocery store, together with fast-informal pizza brands like Yum model Inc.’s YUM, -zero.61% Pizza Hut.
“I’m moderately assured that in the future you’ll see consolidation,” stated Doyle, who believes quite a lot of new players in the pizza house got here in “at roughly the identical time” and with “sufficient similarity in method that i’d be shocked” about this type of exchange.
“I view it as new rivals who frankly have been taking share from bottom and tops and regional chains that simply haven’t been doing smartly,” he stated.
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Domino’s shares are up nearly forty six% for the yr up to now, whereas the S&P 500 Index SPX, +0.sixty five% is up 4.eight% for the same length.
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