Domino’s Pizza Inc (NYSE:DPZ) stock rose 4.88% (As on October 11, 11:22:38 AM UTC-4, Source: Google Finance) after the company posted mixed earnings for the third quarter and cut its full-year sales guidance. U.S. Company-owned store gross margin increased 1.0 percentage point in the third quarter of 2024 as compared to the third quarter of 2023, primarily driven by sales leverage due to higher customer transaction counts. Supply chain gross margin increased 0.6 percentage points in the third quarter of 2024 as compared to the third quarter of 2023, primarily due to procurement productivity. Income from operations increased $9.4 million, or 5.0%, in the third quarter of 2024 as compared to the third quarter of 2023. Excluding the negative impact of foreign currency exchange rates on international franchise royalty revenues of $1.4 million, income from operations increased $10.8 million, or 5.7%, in the third quarter of 2024 as compared to the third quarter of 2023.  Net income decreased $0.8 million, or 0.5%, in the third quarter of 2024 as compared to the third quarter of 2023 due to higher provision for income taxes. The Company spent $70.8 million on capital expenditures in the three fiscal quarters of 2024 as compared to $59.3 million in the three fiscal quarters of 2023, resulting in free cash flow of $376.1 million in the three fiscal quarters of 2024 as compared to $362.9 million in the three fiscal quarters of 2023.

DPZ in the third quarter of FY 24 has reported the adjusted earnings per share of $4.19, beating the analysts’ estimates for the adjusted earnings per share of $3.71. The company had reported the adjusted revenue growth of 5.1 percent to $1.08 billion in the third quarter of FY 24, missing the analysts’ estimates for revenue of $1.10 billion. This is primarily due to higher supply chain, U.S. franchise advertising and U.S. franchise royalties and fees revenues. The increase in supply chain revenues was primarily attributable to higher order volumes, as well as an increase in the Company’s food basket pricing to stores, but was partially offset by a shift in the relative mix of the products sold by the Company. The Company’s food basket pricing to stores increased 1.3% during the third quarter of 2024 as compared to the third quarter of 2023.

The company slashed its global retail sales growth target to 6% from 7%, citing the “challenging macroeconomic environment and its impact on current business trends across the globe.” It also now expects net store growth of 800 to 850, down from its earlier expectation of 825 to 925.