The Clap
Domino’s Pizza missed their estimated earnings as costs soared.
The Deets
Domino’s has been forced to spend more on ingredients following the war between Russia and Ukraine, which pushed commodity prices up.
In addition to that, increased freight and labor expenses had also impacted the margins of Domino’s.
They reported earnings of $2.82 per share, lower than the expected $2.91 per share. Their gross margin also fell from 39.5% to 36.3%.
Why is this important?
The news had pushed the shares of Domino’s down by a bit over 1%. Price pressures on Domino’s could continue even if commodity inflation slows down.
Even pizza is hurt from increased prices 🍕
