It now expects those currency headwinds to reduce its full-year royalty revenue by about $29 billion to $30 million, compared to its prior forecast of $22 billion to $26 million.ĭomino's plans to rein in its operating expenses and continue buying back shares to counter that pressure, but analysts still expect its adjusted EPS to decline 8% this year before rebounding 18% in 2023. The strong dollar, which could only get stronger as interest rates continue to rise, is another major problem. The company expects its margins to remain under pressure as a result of a 13% to 15% increase in food basket prices for the full year. Analysts expect Domino's total revenue to rise 5% this year, then grow 6% to $4.88 billion in 2023 as the year-over-year comparisons finally stabilize. in the third quarter of 2021 that didn't occur again this year. That recovery offset its decline in international same-store sales, which was largely caused by a difficult year-over-year comparison to a value-added tax holiday in the U.K. The rising dollar also reduced its overseas revenue and prompted it to start reporting its international same-store sales growth in constant currency terms this year.īut in the third quarter, Domino's domestic same-store sales grew again as its growth in average ticket size (which was boosted by its recent price hikes) offset its declining number of total orders. Domino's blamed its slower domestic growth in the first half of the year on a shortage of delivery drivers and other workers, inflationary headwinds, and tough comparisons to its pandemic and stimulus-driven growth over the previous two years.
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