Domino's Pizza beats quarterly sales estimate on strong US demand
The world's largest pizza chain introduced items such as the parmesan-stuffed crust pizza to its list, and attracted value-conscious consumers through deals under its rewards program.
These efforts helped offset the impact from U.S. President Donald Trump's fluctuating tariff policies and the resulting trade tensions.
Consumer spending has declined in recent months due to rising inflation and uncertainty surrounding Trump's policies, prompting customers to seek value offerings rather than expensive dine-out options, which has benefited pizza chains like Domino's.
"In the U.S., both delivery and carry out grew, driving meaningful market share gains," Domino's CEO Russell Weiner said.
Domino's posted a 3.4% rise in same-store sales in the U.S. for the quarter ended June 15, exceeding analysts' average estimate of a 2.21% rise, according to data compiled by LSEG. That marked its first beat in five quarters.
"Domino's has a competitive advantage relative to peers in the sector from the discounts they offer that are difficult to match profitably," said Northcoast Research analyst Jim Sanderson.
The company's online sales grew, aided by discounts and its DoorDash DASH.O partnership, which doubled third-party delivery sales to about 5%, according to M Science analyst Matt Goodman.
Momentum from third-party aggregators and discounts will help drive Domino's sales ahead of peers, Sanderson added.
International same-store sales grew 2.4%, also ahead of the estimate of 1.71% growth, while quarterly revenue rose 4.3% to $1.15 billion, in line with estimates.
Domino's posted quarterly earnings per share of $3.81, compared with the estimate of $3.95.
The company said price hikes on the ingredient packs supplied to outlets reduced the gross margin for its U.S. company-owned stores by 2%.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
15 minutes ago
- Daily Mail
United Airlines grounds entire US fleet
United Airlines was forced to issue an urgent ground stop across its entire mainline fleet on Thursday night due to an active fire alarm at its headquarters. There were fears the decision would spark travel chaos from coast to coast just days after a similar Alaska Airlines ground stop caused hours-long delays for travelers across the United States. Passengers who were already in the air at the time of the ground stop were warned to 'expect some airborne holding due to excessive demand.' The ground stop has since been lifted, and a United spokesperson said: 'A fire alarm sounded at our operations center, which caused employees to move to our nearby backup facility and resulted in a brief nationwide ground stop of United aircraft. No flights were diverted, United Express regional flights [were] not affected.' United operates the world's largest fleet with more than 1,000 planes, all of which were temporarily placed on hold. The order came just days after Alaska Airlines issued a similar ground stop which sparked hours of delays on Sunday night. In that case, the airline requested the US Federal Aviation Administration stop all mainline flights across the United States due to a system-wide IT outage. Planes were grounded from around 8 p.m. PT (11 p.m. ET) before operations resumed again at 11 p.m. PT (2 a.m. ET), Alaska Airlines said in a statement. The firm has as many as 238 planes in its fleet — all of which are Boeing aircraft — and its biggest hubs include Seattle, Portland, LA, and San Francisco. Shortly after the initial request, a secondary order came through to extend the ground stop to subsidiary airline Horizon Air, which operates another 45 planes. Alaska Airlines admitted the ground stop would cause delays for travelers and have knock-on effects into Monday. 'At approximately 8 p.m. Pacific on Sunday, Alaska Airlines experienced an IT outage that's impacting our operations,' the airline said in a statement Sunday evening. 'We requested a temporary, system-wide ground stop for Alaska and Horizon Air flights until the issue is resolved.' The airline has warned of 'residual impacts to our operation throughout the evening' amid concerns about widespread travel delays. 'If you are traveling tonight, please check the status of your flight before leaving for the airport. We apologize to our guests for this inconvenience.' One passenger revealed he and his fiancé spent two hours waiting on a tarmac in Denver before the flight crew finally instructed them that the plane would not be taking off. At 10:30 p.m., all passengers were instructed to disembark and await further instruction, he said. Another passenger, Riley Davis, said after two and a half hours on the tarmac, he still had no indication of when he would be free to deplane. 'Since they cannot coordinate exact gates, they are manually assigning gates via radio communication,' he revealed. 'I would love to know when I can get some dinner, I'm starving.' He was inundated with comments from other travelers who said they'd noticed tarmacs around the country blocked by Alaska Airlines planes which had nowhere to go. Ask ChatGPT
The Independent
8 hours ago
- The Independent
Why Tesla shares fell as Musk issues warning
Tesla shares fell after CEO Elon Musk warned of The electric vehicle maker reported a 12 per cent drop in revenue and a 16 per cent fall in profit, facing increased competition and the impact of Musk's political affiliations. Tesla's financial challenges include the loss of a $7,500 EV tax credit, reduced income from regulatory credits, and hundreds of millions in costs due to tariffs imposed by Donald Trump. Musk indicated a strategic shift towards self-driving taxis, automated driving software, and robotics, rather than focusing primarily on car sales. The company began rolling out its paid robo-taxi service in Austin, Texas, in June, with plans to expand to other cities soon
Daily Mail
8 hours ago
- Daily Mail
Trump fires back at reports he's trying to destroy Musk's companies
President Donald Trump shot back at reports that he will try to destroy the companies of former best friend Elon Musk, clarifying his intent when it comes to the world's richest man. Trump had previously threatened to take away the billions in government contracts that Musk's various companies hold. The duo had a very public fallout over Trump's one big beautiful bill, which resulted in each man making threats against the other But the president now says he wants Musk to 'thrive.' 'Everyone is stating that I will destroy Elon's companies by taking away some, if not all, of the large scale subsidies he receives from the U.S. Government. This is not so!,' the president wrote on Truth Social. 'I want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before! The better they do, the better the USA does, and that's good for all of us,' Trump wrote. The clarification came after White House press secretary Karoline Leavitt was asked in her briefing on Wednesday if Trump supports federal agencies contracting with Musk's artificial intelligence company, xAI. 'I don't think so, no,' she replied and then added she would speak to the president about the matter. xAI won a contract for up to $200 million with the Department of Defense, alongside Anthropic, Google and OpenAI, last week. Additionally, this week, xAI unveiled a suite of products for U.S. government customers, which it refers to as Grok for Government. Trump and Musk have had a hot and cold relationship since the Tesla founder left government service in May. After his departure, Musk publicly turned on Trump's signature bill, complaining it would increase the country's debt and undo much of the savings his Department of Government Efficiency had sought. Trump was furious at Musk's public criticism and, at one point, responded: 'The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts.' 'We might have to put DOGE on Elon. You know what DOGE is? DOGE is the monster that might have to go back and eat Elon,' Trump added. Musk, for his part, threatened to start a third political party to go after Republican candidates and posted on his X account that the reason the Jeffrey Epstein files hadn't been released because Trump is in them. He later took that post down.
