Jim Cramer Calls Domino’s Stock ‘One of the Greatest Performers of All Time’

Domino’s reported earnings on weaker-than-expected fiscal-third-quarter earnings.

In the quarter ended Sept. 6 the Ann Arbor, Mich., company earned $2.49 per share up 22% from $2.05 in the year-earlier quarter. The latest figure was short of the consensus analyst estimate of $2.79 a share in a FactSet survey.

Revenue increased 18% from a year earlier to $967.7 million, topping the estimate of $953 million.

The profit in the quarter reflected factors including higher U.S. franchise revenue, offset partly by more performance-based compensation expense as well as covid-related costs, including more compensation and enhanced sick pay for front-line workers.

The company said the revenue increase stemmed primarily from higher U.S. retail sales. U.S. same-store sales grew 17.5%. International comparable sales climbed 6.2% in the period.

The higher U.S. revenue reflected “customer ordering behavior during the covid-19 pandemic,” Domino’s said. Consumers who stayed in during the pandemic often ordered food delivered to their homes.

“Our strong third-quarter results once again demonstrated our focus on value, service, quality and innovation to meet customer needs,” Domino’s Chief Executive Ritch Allison said in a statement.

Domino’s added 83 net new stores in the period, including 44 in the U.S. and 39 internationally. Domino’s closed 126 stores in the period, mainly in India.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

Latest Videos From TheStreet and Jim Cramer:

Source Article