It isn’t an everyday occurrence that a company reports strong revenue and profit gains and experiences a sharp decrease in the stock price, falling 7% for the day. Yet that’s exactly what happened after Domino’s Pizza(NYSE:DPZ) released its fiscal third-quarter 2020 results, which covered the period that ended on Sept. 6.
This seemingly incongruous situation may leave you scratching your head. So it’s a good time to look deeper into the report to see if there is anything that’s concerning.
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Demand remains strong
With strong roots in delivering pizzas that go back to its founding 60 years ago, it shouldn’t surprise anyone that Domino’s has done well during the pandemic. Excluding foreign exchange translations, its third-quarter total sales grew by nearly 15%. Broken out geographically, U.S. same-store sales (comps) rose by 17.5% and were more than 6% higher internationally.
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Investors head into next week with a few October surprises already in the books. Stimulus drama and further developments with President Trump’s health aside, there are some economic highlights to track in the week ahead, including new PMI prints, weekly jobless claims and the release of Fed minutes. Also of interest is a speech by Federal Reserve Chairman Jerome scheduled for October 6. Powell is expected to push for a stimulus package to boost the economy so the recovery doesn’t continue to stall. On the corporate calendar, earnings from Domino’s
Domino’s Pizza has announced that Kevin Vasconi, who joined the company as its CIO in 2012, will retire effective October 2. Domino’s chief technology officer (CTO), Kelly Garcia, will take over as the top tech leader of the company, which has a $16 billion market cap.
Vasconi and Garcia, who also joined Domino’s in 2012 and became its CTO last year, have worked closely together to turn it into something of a poster child for the digital transformation movement. In a world where software is said to be eating everything, the company’s IT division has taken code and used it to redefine how people get to eat their favorite slices.
The division’s work has helped turn Domino’s into the world’s largest pizza business when ranked by retail sales and has enabled it to keep growing during the
ANN ARBOR, MICH. — Kelly Garcia has been promoted to executive vice president and chief technology officer of Domino’s Pizza, Inc., effective Oct. 2. He replaces executive vice president and chief information officer Kevin Vasconi, who plans to retire Oct. 2.
Mr. Garcia joined Domino’s in 2012 as vice president of e-commerce development. In 2016, he was named senior vice president of e-commerce development and emerging technologies, and in 2019 he became senior vice president and chief technology officer. Prior to his time at Domino’s, Mr. Garcia was vice president of business intelligence and North American operations for R.L. Polk & Co., where he spent eight years. Earlier in his career, Mr. Garcia was a manager at Capgemini, E & Y Consulting and Ernst & Young.
“Under Kelly’s leadership, Domino’s has revolutionized online ordering for the quick-service restaurant industry and introduced the AnyWare suite of digital ordering platforms,” said Ritch
Domino’s Pizza announced the promotion of Senior Vice President—Chief Technology Officer Kelly Garcia to executive vice president—chief technology officer, effective October 2. Garcia will join the company’s senior leadership and will report to Domino’s Chief Operating Officer Russell Weiner.
Garcia replaces Executive Vice President—Chief Information Officer Kevin Vasconi, who has announced his retirement from Domino’s, effective October 2.
“Under Kelly’s leadership, Domino’s has revolutionized online ordering for the quick service restaurant industry and introduced the AnyWare suite of digital ordering platforms,” says Domino’s Chief Executive Officer Ritch Allison. “Domino’s is recognized worldwide for digital innovation, and we are extremely proud to have Kelly take the reins over the technology team, which numbers more than 400 talented individuals committed to making us even better.”
Garcia joined Domino’s in 2012 as vice president—eCommerce development. In addition to the ordering platforms making up the Company’s AnyWare suite, Garcia and team launched Domino’s GPS