Domino’s Pizza stock dipped after the pizza chain reported disappointing quarterly results. The company faced massive pressure from the omicron variant surge, staffing shortages and inflation, and for now, the company expects to continue battling these pressures.
The stock was down more than 5% on Thursday to $353.49.
According to FactSet, Domino’s (ticker: DPZ) reported $2.50 a share earnings within the first quarter, less than analysts’ estimates of $3.06. Revenue stood at $1.01 billion for the first quarter, less than the $1.03 billion expected by analysts.
However, same-store sales, an important indicator of performance for retailers and food chains, lowered by 3.6% during the first quarter, compared to last year’s same period.
“We faced a number of headwinds during the first quarter, from the Omicron surge to staffing shortages to unprecedented inflation, which pressured our results,” said Ritch Allison, Domino’s CEO. “We are actively implementing strategies designed to address them; however, we expect some of these headwinds to persist further into 2022.”
Allison, who is expected to hand over the reins to a new CEO on May 1, reminded investors that the strength of the company is not defined in the short term “but instead by our outstanding long-term track.”