Domino’s Shares Down on Weak Sales, CEO Retirement

Domino's just barely missed Q4 analyst expectations.

Domino’s just barely missed Q4 analyst expectations.

Today, Domino’s Pizza released their total earnings for the fourth quarter of 2021, bringing in a profit of $1.34 billion. Unfortunately, this missed analyst expectations of $1.38 billion, which has caused investors to lose some confidence in the company. Some analysts have begun to wonder whether Domino’s is a pandemic-era stock, only profitable for as long as people were isolating at home and ordering pizza. As COVID-19 restrictions begin to lessen, customers are likely ordering less pizza, hurting Domino’s bottom line.

“We believe that the sale we saw in Q4 2021 and it seems so far in 2022 for the U.S. business are not indicative of the demand our great brand is capable of generating,” Domino’s CEO Ritch Allison said.

On the subject of the CEO, Domino’s received an additional blow to their stock values when it was announced that Allison is planning on retiring from his position effective May 1. Allison will be succeeded by Domino’s Chief Operating Officer and US President Russell Weiner. Taking Weiner’s place as COO will be Sandeep Reddy, who currently works as CFO of theme park chain Six Flags, though he will be retiring from that position later this month.

“With Russell as CEO and with the addition of Sandeep as CFO, supported by the rest of our leadership team, I am comfortable and confident stepping aside, knowing that Domino’s has strong leaders who are passionate and committed to our business,” Allison said in a statement.

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