A pizza is flat, and so was the latest quarter at Domino's Pizza
Revenues dropped by 2% to $339.3 million for the first quarter. Earnings, before the recapitalization writedown, fell by a penny per share to $0.38.
What's the deal, Domino's? You take those tasty Fudgem brownies off the menu. You fatten shareholders with a chunky $13.50 per-share one-time dividend. Now your own financial performance could use a little more fudge and pocket change.
The thing is that Domino's is still rocking, once you get out of the United States. International comps have risen for an amazing 53 consecutive quarters. Unfortunately, things stink closer to home, where comps fell by 2.9% for the period, and more domestic Domino's locations closed than opened during the quarter.
Yes, it can be pretty competitive in the pizza delivery market. Papa John's
Taking on more debt to complete the recapitalization process wasn't the right thing to do. Competitors are fierce, and the more leveraged balance sheet will make it hard to remain nimble. The outlook may not be as negative as the company's book value, but it's not going to get any easier at Domino's in the near term.
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Longtime Fool contributor Rick Munarriz did what he could to boost Domino's comps this past quarter, taking advantage of those generous online coupons. He does not own shares in any of the companies in this story. He is part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.