Domino's Pizza revenue misses expectations in the third quarter

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Domino's Pizza ( DPZ ) Tuesday reported a miss for both top and bottom lines during the third quarter as the company struggles to avert a stiff challenge from the growing number of food delivery services. "Data-reactid =" 15 "> Domino & # 39; s Pizza (DPZ) on Tuesday reported a miss for both top and bottom lines during the third quarter as the company struggled to avert a stiff challenge from the growing number of food delivery services.

<p class = "canvas atom canvas text Mb (1[ads1].0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Domino's has not been immune against pressures from third-party aggregators such as DoorDash, Uber Eats ( UBER ) and Grubhub ( GRUB ) – all of which disrupted the dining room. data-reactid = "16"> Domino's has not been immune to pressure from third-party aggregators such as DoorDash, Uber Eats (UBER) and Grubhub (GRUB) – all of which have disrupted the dining room. The pizza giant's sales in the same store, an important industry metric, also missed expectations.

Shares fell more than 3% in trading before Tuesday.

<p class = "canvas atom canvas text Mb (1.0 cm) Mb (0) – sm Mt (0.8 cm) – sm" type = "text" content = "Here were the numbers for & nbsp; Domino's third quarter compared to Bloomberg compiled estimates: "data-reactid =" 18 "> Here were Domino's third quarter figures, compared to Bloomberg compiled estimates:

• Revenue: $ 820.8 million versus $ 823.10 million expected

• Adjusted earnings per share: $ 2.05 vs. $ 2.07 expected

• Domestic same store sales: + 2.4% vs. + 2.6% expected

• International sales of the same store: + 1.7% vs. + 2.8% expected

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Domino's third-quarter US sales at the same store missed Wall Street estimates for the fourth quarter in a row. The pizza giant now expects US same stores to grow 7% to 10% over the next two to three years. It had previously expected sales growth in the same store between 8% and 12% over a period of three to five years.

Meanwhile, Domino's international sales growth is seeing between 1% -4% over a two to three year period. Previously, the company expected 3% to 6% sales growth in the same store over the next three to five years.

"It was a good quarter for Domino's as we continue to lean on our core strength towards a unique competitive environment," Domino's CEO Ritch Allison said in a statement.

Competition in the fast food industry has been hot as companies focus on new menu innovation, upgraded technology and delivery to increase sales and increase foot traffic.

For years, Domino's was able to dominate the industry with strong sales growth in the same store thanks to its early technology. In recent quarters, however, the pizza giant has struggled to gain a foothold as competition and third-party delivery apps threaten to thwart growth.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = "After Dominos & nbsp; Second Quarter Results Report quoted Allison "headwinds related to aggressive activity from third party delivery aggregators. I do not expect this activity to ease in the short term. "" data-reactid = "40"> Following Domino's second-quarter performance report, Allison cited "headwinds related to aggressive activity from third-party delivery aggregators. I do not expect this activity to ease in the near term."

<p class = " canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Shares of Domino's have dipped 1.6% this year, when S&P; 500 ( ^ GSPC ) rose 19% over the same time period. "Data-reactid =" 41 "> Shares of Domino's have dropped 1.6% this year, as the S&P 500 (^ GSPC) rose 19% over the same time period.

Domino's income conference calls with management started at 10 a.m. ET.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt ( 0.8em) – sm "type =" text "content =" This post is evolving. Please check for updates. "data-reactid =" 43 "> This post is under development. Please check for updates.

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<p class =" canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type = "text" content = " Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung . "data-reactid =" 58 "> Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung .

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