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Yahoo Finance Live anchors discuss second-quarter earnings for Domino’s Pizza.
BRIAN SOZZI: Julie, you mentioned moments ago Tums, so let's talk some pizza. Shares of Domino's in focus after reporting earnings this morning. Beating on revenue, but missing on the bottom line. I have lots to say on this Domino's quarter. I will absolutely run out of time, but Myles Udland, our senior editor, mentioned to me as I was walking downstairs that, look, the driver shortage continues to impact the Domino's. It continues to impact fast food industry, more broadly.
But I would add, too-- excuse me-- it has now gotten more expensive to eat at Domino's, $15 to $20 for a specialty pizza, depending what market you are in. Why not just make your own food at home? US same store sales down 9.2% in the most recent quarter. US and international sales down 2.2% for Domino's pizza as well. The stock has not been doing good for the past year. New CEO Russell Weiner, he's got his work cut out for him to get that growth going in.
BRAD SMITH: And it's where the growth is even coming in from right now. This company used to do so good at the technology innovation. They were one of the first to market with the ability to order online, the ability to order through a tweet or through emojis.
And I think for what Domino's, what Chipotle, what Starbucks have done in that technology innovation, I mean, they're continuing to see more than half of all global retail sales during last year and then all of that coming into this year as well from digital channels. And the company generating more than 75% of retail sales in the US via digital channels during this last year.
And so, it's still digitally reliant. But in an era where you've got so many of the mom and pop shops that people want to make sure that they're also patronizing, that digital type of annexation that you have for your brand is also being challenged by the likes of a DoorDash, by the likes of an UberEats as well.
BRIAN SOZZI: You mentioned that technology. And I cover Domino's when they were launching all this stuff way back under then CEO Patrick Doyle, who was just the master CEO. It was a tremendous growth story. But really, ever since he left, they have lost some of that sizzle. And that is a pun well warranted here.
Ritch Allison, he left about a year ago-- short tenure as CEO. New CEO, Russell Weiner. They have just lost that marketing buzz. And I think it's time for them to take a little bit more risk with their menu and what they're, in fact, doing. I would argue Papa John's is dominating in terms of food innovation on the menu, but also, too, even with delivery.
JULIE HYMAN: Yeah, it's alarming to not just see that earnings per share miss, which you kind of might expect in this environment with the driver shortage with rising costs. But to also see that-- those same store sales declines-- and somebody brought up earlier the idea that with the reopening, one of the things that used to be a staple pre-pandemic was the kids' sports pizza party, right? And sporting events are back, right, for kids. But they're not-- don't seem be ordering from Domino's, I guess, for those pizza parties.
BRAD SMITH: All right, well, maybe they're getting the garlic sauce from Papa John's. Who knows?