Oct 18 Domino's Pizza Inc on Tuesday
reported a bigger-than-expected 17 percent jump in quarterly
revenue as its U.S. division overcame intense competition that
is taking a bite out of industry sales.
Sales at domestic franchise units open at least one year
were up 12.9 percent in the third quarter ended Sept. 11.
Analysts had expected a rise of 9.4 percent, according to
polling firm Consensus Metrix.
Domino's results come as Wall Street analysts are tempering
expectations for rivals such as McDonald's Corp and
Dunkin' Brands Group Inc, amid intensifying competition
from upstart chains, meal-kit sellers and grocery stores - where
prices versus restaurants are at a 30-year low.
The world's biggest pizza delivery chain is a leader in
digital ordering. Its main rival, Yum Brands Inc's Pizza
Hut, which has been struggling, reported a 2 percent decline in
U.S. same-store sales for the latest quarter.
Domino's net income jumped almost 25 percent to $47.2
million, or 96 cents per share, topping the average analyst
estimate of 90 cents per share, according to Thomson Reuters
The Ann Arbor, Michigan-based company had 12 percent fewer
shares in the latest quarter, compared with the year-earlier
period, which also boosted per-share earnings.
Total revenue climbed 17 percent to $566.7 million, beating
analysts' average estimate of $542.6 million, also helped by
higher supply chain revenue and new store openings.
Domino's shares were up 3 percent at $156.70 in premarket
(Reporting by Lisa Baertlein in Los Angeles; Editing by Martina