Domino’s Pizza (NYSE: DPZ) reported mixed quarterly earnings on Thursday as it struggled with rising costs and a continuous shortage of workers. Furthermore, the company expects food prices to continue to rise and foreign exchange rates to bring down its international revenue more than it had anticipated. The company’s shares plummeted almost 3% at USD400.10 during pre-market trading.
The multinational pizza restaurant chain reported earnings of USD2.82 per share, compared to the expected USD2.91 a share. Revenue amounted to USD1.07 Billion, higher than analysts anticipated USD1.05 Billion.
Our results for the quarter faced challenges consistent to those I outlined back in April. We continued to navigate a difficult labor market, especially for delivery drivers, in addition to inflationary pressures combined with COVID and stimulus-fueled sales comps from the prior two years in the U.S.,” said Russell Weiner, Domino’s Chief Executive Officer. “However, the strength of our franchisees and team members, along with the strategies we are putting into place, make me confident we are on a path to overcome these short-term obstacles and make the Domino’s brand and business stronger than ever.”
Dominos is now forecasting fiscal 2022 food basket prices to surge anywhere from 13% to 15%, an increase from the previously anticipated 10% to 12%. Moreover, the company stated that foreign currency exchange rates will also impact its revenue by USD22 Million to USD26 Million, up from the previous forecast of USD12 Million to USD16 Million.