World News

Domino’s earnings beat as pizza demand remains strong in the U.S.

Advertisement


Employees garnish pizza inside a Domino’s Pizza location.

Jason Alden | Bloomberg | Getty Images

Domino’s Pizza on Thursday reported that its U.S. same-store sales climbed 3.5% in its latest quarter, despite tough comparisons to its skyrocketing sales during lockdowns last year.

Shares of the company rose more than 2% in premarket trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $3.12 adjusted vs. $2.87 expected
  • Revenue: $1.03 billion vs. $972.3 million expected

The pizza chain reported fiscal second-quarter net income of $116.6 million, or $3.06 per share, down from $118.7 million, or $2.99 per share, a year earlier.

Excluding recapitalization expenses, Domino’s earned $3.12 per share, beating the $2.87 per share expected by analysts surveyed by Refinitiv.

Net sales rose 12.2% to $1.03 billion, beating expectations of $972.3 million.

Advertisement

In the United States, Domino’s reported positive same-store sales growth. On a two-year basis, U.S. same-store sales rose 19.6% in the quarter. The segment’s strong performance this quarter is a sign that the company may be able to avoid a sales slump stemming from pizza fatigue.

Outside of the U.S., Domino’s same-store sales jumped 13.9% compared with a year ago and 15.2% compared with two years ago. Last year, Domino’s international business was hurt by temporary restaurant closures in markets with stricter lockdowns than the U.S.

Worldwide, Domino’s added 238 net new locations, including 35 in its home market.

Additionally, Domino’s announced that it completed a $1.85 billion recapitalization transaction, which was previously announced. The company also made a $1 billion accelerated share repurchase agreement with an unnamed party, allowing the company to receive and retire more than 2.25 million shares.



Source link

Leave a Reply