Domino's beats quarterly sales estimate on strong US demand
surpassed analysts' expectations for second-quarter US same-store sales on Monday, driven by new items on the menu and promotions, amid persisting macroeconomic uncertainties, sending shares up nearly 5 per cent in premarket trade.
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 US 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 US, 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 5 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 $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 US company-owned stores by 2 per cent. – Reuters
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