Domino’s Pizza Shares Fall 4.20% as U.S. Sales Growth Slows

Domino’s Pizza (DPZ) shares weakened after U.S. same-store sales growth slowed to 0.3% in the third quarter despite higher revenue, net income and diluted earnings per share.

The stock traded at $300.37 at 10:32 a.m. ET (14:32 UTC), down 3.39% from the previous close of $310.90. It later closed at $297.85, down 4.20%.

Domino’s reported third-quarter revenue of $1.1856 billion, up 3.4% from $1.1471 billion a year earlier. Net income increased 9.2% to $152.2 million, while diluted earnings per share rose 12.7% to $4.60.

U.S. same-store sales increased 0.3%, compared with 5.2% growth in the year-earlier quarter. International same-store sales rose 0.2%, excluding foreign-currency effects, while global retail sales increased 3.2% on the same basis.

The company added 175 net stores during the quarter, including 26 in the U.S. and 149 internationally. Revenue growth came mainly from higher supply-chain revenue and franchise royalties, partly offset by lower U.S. company-owned-store revenue.

During the session, the stock remained below its daily 20-session EMA at $305.64, 50-session EMA at $315.43 and 200-session EMA at $347.54. Its daily relative strength index was 42.91, below the neutral 50 level.

The daily MACD histogram was positive at 2.48, while the MACD line was negative 4.38 and the signal line was negative 6.86. During the intraday analysis, the share price remained above the Bollinger mid-band at $299.33. Daily ATR14 rose to $9.91 from $8.59, indicating a higher recent volatility reading.

“As I step into the CEO role, I am honored to lead Domino’s and build on the competitive advantages that have long set us apart: our iconic brand, best-in-class franchise system, global scale and proven operating capabilities,” Domino’s CEO Joe Jordan said.

Jordan said the company would focus on getting closer to customers, helping franchisees improve profitability and making its strongest performance more consistent.