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Why Did Domino’s EBIT Margin Contract in Q3 2018?

Why Did Domino’s EBIT Margin Contract in Q3 2018?

The contraction was the result of the company’s adoption of a new accounting standard and a lower operating margin in its supply chain. Increased delivery and labor costs lowered the segment’s operating margin. The operating margin of Domino’s company-owned restaurants was negatively affected by commodity inflation, higher labor costs, and an increase in insurance expenses.