Domino's beats quarterly sales estimate on strong U.S. 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 per cent rise in same-store sales in the U.S. for the quarter ended June 15, exceeding analysts' average estimate of a 2.21 per cent rise, according to data compiled by LSEG. That marked its first beat in five quarters.
The company's online sales also grew, helped by discounts and from the success of its partnership with DoorDash, which doubled its share of sales made through third-party delivery channels to roughly five per cent, according to Matt Goodman, analyst at research firm M Science.
International same-store sales grew 2.4 per cent, also ahead of the estimate of 1.71 per cent growth, while quarterly revenue rose 4.3 per cent to US$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%.
(Reporting by Neil J Kanatt in Bengaluru and Waylon Cunningham in New York; Editing by Shilpi Majumdar and Tasim Zahid)
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