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Technology

Domino's CEO explains 'fixable problems' in latest earnings report, touts domestic growth

While investors found the second-quarter earnings results for Domino’s Pizza less than tasty, President and CEO Patrick Doyle said Wall Street had nothing serious to fear.

“We’ll work through it. We’ll see just how quickly we can get it moving again,” Doyle told “Mad Money” host Jim Cramer on Monday. “You know, these are fixable problems. There is nothing going on in the economies, anything external. This is about us executing, getting this right and we know how to get this done.”

While the delivery giant’s report topped analyst estimates, the Street reared up when international same-store sales, a key metric for retailers, came in lower than the company expected.

Doyle said that while management was not happy with Domino’s 2.6 percent in overseas same-store sales, which did not meet the company’s expectations of 3 to 6 percent, they were equipped to tackle the issues at hand.

“Our four international regions were all up, but there was a little bit of weakness, particularly in Europe,” the CEO said. “It’s still a terrific business, they’re building lots of stores, but we think the value equation there wasn’t quite right during the quarter and there are a few things that we’re working on. … Ultimately, we’ve got a lot of best practices around the world that we can share with them. Obviously, the U.S. still put up a terrific quarter and so we know what to do with the business.”

Domino’s same-store sales in the United States came in at a healthy 9.5 percent. Doyle attributed the strength to customer loyalty as well as the company’s standout technology that allows customers to watch as their orders are being prepared and delivered.

“It’s interesting, everybody’s talking about delivery right now. We’ve been doing delivery for 57 years. We’re really good at it,” Doyle told Cramer. “And so that service, convenience, everything continued to come together very, very well for us, so [the] domestic story continues to be absolutely fantastic.”

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Source: Tech CNBC
Domino's CEO explains 'fixable problems' in latest earnings report, touts domestic growth

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