Latest news with #Domino's
Miami Herald
10 hours ago
- Business
- Miami Herald
Pizza Hut rival dining chain files for Chapter 11 bankruptcy
Domino's continues to hold the advantage over Pizza Hut in total locations among pizza chains, with 21,536 global units and 7,061 U.S. restaurants, according to the company's 2025 second-quarter results released on July 21. Pizza Hut used to be the world's largest pizza chain until 2017, when Domino's surpassed the Hut in global sales with $12.25 billion compared to $12.03 billion. Pizza Hut reported a total of 20,225 global locations and 6,474 U.S. locations in the first quarter of 2025. It will release second-quarter results on Aug. 9. Related: Popular pizza dining chain franchisee files Chapter 11 bankruptcy Domino's also beat analyst projections in the second quarter for same-store sales, rising 3.4% in the quarter ending June 15, exceeding analysts' average estimated increase of 2.21%, Reuters reported. Domino's: Global, 21,536; U.S., 7, Hut: Global, 20,225; U.S., 6,474. The dominance of Domino's and Pizza Hut has impacted a lot of smaller pizza dining chains, like Backdraughts Pizza, which can't compete with the two largest chains' sheer number of locations and their huge advertising budgets. Fierce competition, along with rising labor and food costs, has forced many smaller pizza restaurant chains to close locations and sometimes file for Chapter 11 or Chapter 7 bankruptcy protection. Image source: Bloomberg/Getty Images Popular brick-fired pizza and craft beer chain Back Draughts LLC filed for Chapter 11 bankruptcy protection to reorganize its business on July 23. The New Port Richey, Fla., pizza restaurant chain, whose locations are known as Backdraughts Pizza, filed its Subchapter V petition in the U.S. Bankruptcy Court for the Middle District of Florida, listing up to $50,000 in assets and $1 million to $10 million in liabilities. The family-owned pizza chain, which opened about six years ago in a downtown Post Office building, currently operates locations in Tarpon Springs and New Port Richey, Fla., as well as the Twisted Orange Craft Cocktail Lounge in Tarpon Springs. People First Pizza: March 26, 2025Zeppe's Tavern: March 31, 2025;Bertucci's Restaurants: April 24, 2025;Red Door Pizza LLC: July 15;Back Draughts: July 23. Other small pizza chains also faced financial distress this year as rock and roll-themed pizza restaurant franchise Zeppe's Tavern in Newbury, Ohio, filed for Chapter 11 bankruptcy on March 31, 2025, seeking to reorganize its business. Zeppe's Tavern consists of 13 locations in Northeast Ohio and one in Naples, Fla., according to the restaurant's website. Major iconic food brand files for Chapter 11 bankruptcyPopular Dairy Queen rival franchisee files Chapter 11 bankruptcyPopular vision care chain files for Chapter 11 bankruptcy East Coast pizza chain Bertucci's Restaurants filed for Chapter 11 protection three times in seven years, facing economic issues. The pizza chain first filed in April 2018, and then filed a second time in December 2022, when it operated 31 restaurants. Bertucci's had 15 restaurants when it filed the third time in April 2025. Related: Popular vodka and gin brand declares Chapter 11 bankruptcy Even some of the largest chains were not immune from filing for bankruptcy, as People First Pizza Inc., which operated Domino's Pizza locations, on March 26, 2025, filed for Chapter 11 bankruptcy protection to reorganize its business, facing over $500,000 in disputed claims. The franchisee planned to continue operating. Greenville, S.C.-based Little Caesars pizza franchisee Red Door Pizza LLC, which is owned by fast-food chain franchisee Red Door Brands LLC, filed for Chapter 11 bankruptcy protection on July 15 along with three affiliates, seeking to restructure their businesses. Don't miss the move: Subscribe to TheStreet's free daily newsletter The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
2 days ago
- Business
- Yahoo
Domino's Q2 revenue beat: Why this analyst still isn't bullish
Bernstein senior analyst for US restaurants Danilo Gargiulo joins Market Catalysts with Julie Hyman to discuss Domino's (DPZ) second quarter earnings results, where the company beat revenue estimates. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Domino's giving up on some earlier gains after it topped second quarter revenue estimates boosted by strong same store sales growth. Joining me now Danilo Garzillo, Bernstein senior analyst for US restaurants. Danilo, it's good to see you. You've got a neutral rating on the stock, but you did, um, like most of your peers, you were impressed by these results. Was there anything on the call or in the results that you think could be responsible for the pullback that we're now seeing in the shares? I will actually point something else. Maybe during the call, there were a couple of comments that I think were incremental, um, that the CEO Russell was trying to explain, not only the strength of the fundamentals of Domino's potentially during into 2026 and the international markets, um, you know, having some sort of recovery overall. I think there were a couple of comments that were interesting on the potential menu platform expansion that Domino's could be having in 2026 or beyond that could be driving the stock further. But I think to your question directly on the potential pullback that we might have seen, I think the uncertainty on international markets regarding the number of units, um, given the situation that is unfolding with one of their master franchisees could be the potential cause for this deceleration. Gotcha. Interesting. So the shares are now down about 2%, but to your point on the longer term, um, how much was sort of menu innovation? I mean, if you're looking out further and seeing more menu expansion, how much was menu innovation a driver for traffic and sales in the quarter? Yeah. I think it was a significant component of their acceleration and it has been a significant component of Domino's acceleration. If you look at also the past 10 years, right, they've been gaining market share quite consistently over the past 10 years where others have been closing their stores, Domino's has been able to open their stores. And part of the reasons why Domino's has been able to boost it is because the franchisee economics has been relatively solid, um, given that the menu innovation has also attracted more and more new consumers. So specifically this quarter, there's been a boost in sales derived by the launch of the parmesan stuffed crust pizza last quarter that should be helping for at least the remaining of 2025 and into 2026 the sales to remain sustained. I'm also curious, um, you know, the company also talked on the call about the national rollout on DoorDash and that that is a potential driver here. How much do you think that's going to help traffic? Yeah, I would say so far it has been relatively minimum impact into the 2Q number, simply because the timing of the partnership was towards the end of the quarter. But I think we have seen also with Uber Eats that exit rate of end of last year it was about 3% as a total sales that Domino's was generating in the US. And so I would think that DoorDash having twice as much, you know, twice as much market share compared to Uber Eats will be a meaningful contributor to Domino's sales going forward. The only question is going to be how much of the overlap might be we seeing from users who are both Uber Eats and DoorDash users. So how much of that could be potentially a drawback into the overall upside optionality that this platform will provide to Domino's. But definitely there is a set of consumers who don't have their Domino's apps and by heading just an aggregator on their mobile phone are going to be having access to Domino's pizza, but as before they couldn't. Um, Danilo, what about the cost side of the equation? I saw one of your, um, peers, another analyst flagged that there was some margin compression. What accounted for that, and is that going to continue to be an issue? Yeah, I would say there were two main components. On the food side, I think we were not particularly worried because management had already called out the potential fluctuations on on the food. Um, the part that really was a surprise for us and I think for everybody was some one-off impact that some insurance charges really had on the on the second quarter earning. This should be like a one-off, so I'm not entirely worried. Now, clearly, as we think about the value intensity in the pizza category, and if we think about some of the mix shift that we might be seeing because the carry out component of Domino's is growing, then clearly there could be some potential margin compression over time, like marginal margin compression over time that, you know, one should be potentially expecting for Domino's, given that the vast majority of the productivity gains has already been achieved by Domino's. And Danilo, as I mentioned, you've got a market perform, a neutral equivalent on this stock. Um, I'm curious why, especially given these results, what's still sort of holding you back from being more bullish? Yeah, I think most investors will want to see a couple of things. Number one, either a better entry point, right? The stock already trading mostly in line, if not a little bit above their five-year median in terms of valuation that clearly calls out for sustainable same-store sales growth and acceleration in units. And I think obviously you would want to see some elements of that sustaining over time. And then the second part that investors have been a little bit more concerned about is how much of these 2025 out performance in the first quarter, which by the way is going to be accelerating in the second quarter as well, because of the timing of some of these initiatives, how much of that is going to be retained in 2026 when you're going to start lapping the launch of the stuffed crust pizza, the launch of the DoorDash partnership. So any incremental news, like new menu items, like the one that Russell, the CEO, was mentioning in the call, like, you know, the potential fried chicken addition into their menu, that could be a clear catalyst for the stock reacceleration and sustainability of an even a higher multiple versus their versus their historical median. Danilo, when you're looking ahead to some of those other innovations, maybe on the menu that we're waiting for, any requests, anything that you think that they should be developing? Look, I think the Wingstop example clearly is clear. Um, the having fried chicken has been working thoroughly in many parts of the world. I don't know if the version that Domino's has necessarily on their menu could be as satisfactory to the vast majority of consumers as of now. So as Domino's is exploring the, you know, the void areas into their menu, and now they have the capacity to the stores to potentially adding some fryers, I would think that could be like a potential venue for them to be entering a little bit more aggressively. Other than that, there is always opportunity to be a little bit more streamlined in some SKUs that don't have the highest level of velocity, but I would say fried chicken seems to be the place where everybody's trying to crowd the market right now, and it will be like a safe bet.
Yahoo
3 days ago
- Business
- Yahoo
Domino's regains US sales momentum in Q2
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Dive Brief: Domino's posted U.S. same-store sales growth of 3.4% in the U.S. during the second quarter, according to an earnings release. Both delivery and carryout sales grew during the quarter and the chain is now fully rolled out with DoorDash and Uber Eats, Domino's CEO Russell Weiner said in a statement. This momentum contrasts a same-store sales dip of 0.5% during the first quarter, which was driven by negative traffic and a slight decline in its sales mix. During that period, Domino's posted higher carryout sales that typically have a lower ticket than delivery, according to a Q1 2025 earnings call. Dive Insight: Domino's strong quarterly sales could indicate a return of positive momentum in the QSR pizza delivery segment. During the first quarter, all of the top three pizza delivery chains delivered negative same-store sales results. Domino's has several sales drivers in the works including the addition of its Parmesan Stuffed Crust pizza, growth in third-party aggregator marketplaces and ongoing value propositions and promotions. During a Monday call with investors, Weiner said the chain's rollout of DoorDash went 'extremely well' as Domino's learned from its previous launch of Uber Eats. The company completed its rollout with DoorDash nationwide by the end of the second quarter. Domino's is now beginning to market on the platform 'with investments coming on both sides.' The company expects sales from DoorDash to impact the second half of the year. Domino's U.S. same-store sales The pizza delivery chain recovered sales momentum in Q2 2025 after a dip in sales during Q1 2025. Delivery same-store sales also were up 1.5% during the quarter, CFO Sandeep Reddy said during the call. This reversed a trend of negative comps across several quarters in this channel. This sales momentum could grow more as Domino's gains additional market share on Uber Eats and DoorDash as awareness grows. 'We think we should have our fair share on these platforms and so that means we've got a lot to go on DoorDash, and we've got more to go on Uber,' Weiner said. 'We're going to continue to grow market share over the next few years, so that number is always going to increase. I don't think it's far-fetched to say that we should have the same or similar market share on aggregators as we do outside.' Weiner previously said the company believes that third-party delivery could become a $1 billion sales driver for the chain.
Yahoo
4 days ago
- Business
- Yahoo
Domino's Q2 Earnings Miss, Revenues Beat Estimates, Stock Up
Domino's Pizza, Inc. DPZ reported second-quarter fiscal 2025 results. Its earnings missed the Zacks Consensus Estimate, while revenues beat the the announcement, the company's shares gained 5.3% in today's pre-market trading the fiscal second quarter, the company saw revenue growth supported by several key factors. In the United States, both delivery and carryout channels experienced gains, helping the brand capture additional market share within the competitive pizza quick-service restaurant segment. The company completed its rollout across the two largest food delivery aggregators, which expanded customer reach and boosted order volumes. DPZ's Q2 Earnings & Revenue Discussion In the quarter, Domino's reported adjusted earnings per share (EPS) of $3.81, which lagged the Zacks Consensus Estimate of $3.93. The bottom line also declined 5.5% from $4.03 reported in the year-ago of $1,145.1 million beat the consensus mark of $1,144 million. Moreover, the top line increased 4.3% on a year-over-year basis. This upside can be attributed to strong contributions from U.S. franchise advertising and higher supply-chain revenues. In second-quarter fiscal 2025, Domino's had 178 net store openings. Domino's Pizza Inc Price, Consensus and EPS Surprise Domino's Pizza Inc price-consensus-eps-surprise-chart | Domino's Pizza Inc Quote DPZ's Other Metrics Global retail sales (excluding foreign currency impact) rose 5.6% on a year-over-year basis. This upside was driven by a year-over-year increase in international (6%) and U.S. store sales (5.1%).Comps at Domino's domestic stores (including company-owned and franchise stores) rose 3.4% year over year. We estimated the metric to increase 6.7% year over domestic company-owned stores, Domino's comps increased 2.6% compared with the 4.5% rise reported a year franchise store comps rose 3.4% compared with a 4.8% increase reported in the prior-year at international stores, excluding foreign currency translation, rose 2.4% compared with a 2.1% improvement reported in the prior-year quarter. We estimated the metric to increase 1% year over year. DPZ's Q2 Margins In the fiscal second quarter, Domino's gross margin expanded 70 basis points (bps) year over year to 40.1%. However, U.S. company-owned store gross margin contracted 200 bps year over year to 15.6%. This downside can be attributed to the increase in the company's food basket pricing to stores and higher insurance costs. Balance Sheet of DPZ As of June 15, 2025, cash and cash equivalents totaled $272.9 million compared with $186.1 million as of Dec. 29, 2024. Long-term debt (less current portion) at the end of the fiscal second quarter totaled $3.83 billion, which was in line with fiscal 2024-end. Inventory amounted to $69.7 million compared with $70.9 million as of Dec. 31, expenditure at the end of the fiscal second quarter totaled $32.2 million, down from $43.7 million reported in the prior-year the reported quarter, the company repurchased 315,696 shares for an aggregated cost of $150 million. As of June 15, 2025, DPZ stated the availability of $614.3 million under its repurchase declared a cash dividend of $1.74 per share. The dividend will be paid on Sept. 30, 2025, to its shareholders of record as of Sept. 15. DPZ's Zacks Rank Domino's currently carries a Zacks Rank #3 (Hold). Stocks to Consider Some better-ranked stocks in the Zacks Retail-Wholesale sector are Cracker Barrel Old Country Store, Inc. CBRL, McDonald's Corporation MCD and Yum! Brands, Inc. Barrel currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks Barrel has gained 24.2% in the year-to-date period. The Zacks Consensus Estimate for Cracker Barrel's fiscal 2026 sales and EPS indicates growth of 1.8% and 9.4%, respectively, from the year-ago period's presently carries a Zacks Rank #2 (Buy). The stock has inched up 2.5% in the year-to-date period. The Zacks Consensus Estimate for McDonald's 2025 sales and EPS implies growth of 1.9% and 4.8%, respectively, from the year-ago levels. Yum! Brands presently carries a Zacks Rank #2. The stock has gained 11.1% in the year-to-date Zacks Consensus Estimate for Yum! Brands' 2025 sales and EPS indicate an increase of 6.9% and 10%, respectively, from the year-ago levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Yum! Brands, Inc. (YUM) : Free Stock Analysis Report Domino's Pizza Inc (DPZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
NZ Herald
4 days ago
- Business
- NZ Herald
Electric motorbike maker Ubco revived by Kiwi rich-list families, adopts new focus
Keen said the deal was structured as an asset sale. He had no comment on the price and other details until the next receivers' report, due late September. The rich-listers, who hold a majority of the new company, are Sir Stephen Tindall (via his K One W One vehicle), Peter Goodfellow (via Avalon Asset Management) and the Holdsworth family (via Evander Management; the late John Holdsworth was the founder of New Zealand's largest homegrown IT firm, the $1.5 billion-revenue Datacom; his family office retains a 55% stake, along with its myriad investments in start-ups). Sir Stephen Tindall, one of Ubco's three white knights. Photo / Greg Bowker The receivers were appointed by Goodfellow's Avalon to claw back money owed through a General Security Agreement dated October 31, 2024. Ubco fleet manager Grant Payton said 21 Ubco staff will work for the reborn company which, after a series of restructures, was down to 31 employees by the time of its receivership, from 109 last year. '21 families will sleep a lot more comfortably tonight than they have for the past six months,' Payton said. The 21 staff were kept on by the receivers to assist with servicing and spare parts. Ubco sold three bikes to NZ Post shortly before its receivership. The firm will stay at its Mount Manganui base, which will remain the hub for management, research and development and product design, while Taiwan's TPK will return as the contract manufacturer. Oliver Hutaff will return as chief executive. The acquisition also includes Ubco's Australian subsidiary, and Ubco's New Zealand finance subsidiary, which services fleets on subscription, neither of which was placed into receivership. Ubco, founded in 2015, sold more than 6000 of its electric motorcycles, but was caught in an endless series of capital-raising rounds as it scrabbled for cash. There are 60 Ubco 2x2 electric motorbikes in Domino's New Zealand delivery fleet. The bike maker got its foot in the door by offering the pizza chain a monthly subscription model rather than buying the 2x2s outright. Photo / Chris Keall Some insiders told the Herald the firm tried to expand too far and too fast. What will be different this time around? 'It's a much smaller team,' Payton said. 'We won't try to be everything to everyone in every market in the world.' Ubco will still make single bike sales to urban hipsters, but the focus will be on fleets. Domino's was the pilot customer for a "monthly subscription" fleet deal covering Ubco's bikes and software to mange them. Shortly before its receivership, the firm sold 175 of its new 'Duty' model to Australia Post, plus three to NZ Post in a more modest pilot. Domino's was also a marquee customer. 'Still heavily engaged with Australia Post and other postal agencies. It wasn't easy, but we kept those doors open,' Payton said. Now open for defence business Another change: soon after the receivership, Mark Phillips, managing director of Ubco Australia between March 2020 and September 2022, blamed the collapse in part on squeamishness about pursuing defence opportunities. Payton said that is no longer the case. 'The military is absolutely a focus. Anywhere that need a utility bike.' Farms and conservation agencies will also be points of focus. Two new distributors have been appointed: Toad in Europe, which Payton is hoping will lead to fleet deals with French military and police, and The Utility Bike Company in the US, which has been formed by a former Ubco sales manager. Kiwi 'legacy' continues Grant Thornton's Keen says he's 'delighted' with the outcome after a 'robust sales process'. 'It's fantastic to see a Kiwi business continue its legacy with key team members remaining – something that's particularly challenging in today's economic environment, where distressed businesses face significant loss of talent and even closure," Keen said. An Ubco 2X2 at Auckland's Hobsonville Point. Photo / Chris Keall While Utility Fleet Vehicles' primary focus is on commercial fleets, individuals, including past purchasers from the former business, can still buy Ubco bikes and parts through the dealer network, Payton said. Key fleet trials are under way and further updates on partnerships and product launches are expected in the coming months. 'Not many companies come through a process like this with their core team retained, their product refined, and their direction clearer than ever,' Hutaff said. 'That tells you a lot about the strength of what we've built and where we're headed.' Chris Keall is an Auckland-based member of the Herald's business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.
