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Investing.com — Domino’s sold a lot of pizzas during Covid-19, and they helped themselves to a slice of the pie.
Profit missed expectations because of “higher variable performance-based compensation” and enhanced sick pay for frontline workers because of the coronavirus.
Domino’s Pizza Inc (NYSE:DPZ) shares dropped 8% on Thursday.
Earnings per share of $2.49 compared to the estimated $2.76 on sales of $967.7 million, which beat the expected $949 million.
General and administrative expenses increased 9.5%, or $8 million, for the third quarter, thanks to performance-based compensation, the company said in a statement. Revenue from U.S. franchisees rose, and Domino’s benefited from a lower effective tax rate.
The company added 44 net new U.S. stores, and 39 net new international locations in the quarter, and closed 126 stores, largely in India.
The stock is up 35% as stay-at-home mandates drove up pizza delivery demand.
