Domino's serves up forecast-beating sales, shares rise

(Sharecast News) - Shares in Domino's Pizza jumped on Monday, after second-quarter sales at the US fast food giant beat expectations. Total revenues rose 4.3% in the three months to June end, to $1.15bn, while same-store domestic sales improved 3.4%, ahead of forecasts for a 2.2% rise.

Globally, same-store sales were 2.4% higher. Wall Street had been expecting more modest growth of 1.7%.

Income from operations was 14.8% higher, at $28.9m, although net income fell 7.7%, to $10.9m, due to higher provisions for taxes and its investment in DoorDash.

Domino's announced its partnership with the American food delivery app in April.

Russell Weiner, chief executive, called the results "strong".

Domino's did not give any guidance for the second half. However, Weiner said: "Internationally, we continued to grow despite macro challenges. In the US, both delivery and carryout grew, driving meaningful market share gains.

"With what we believe are best-in-class unit economics, the largest advertising budget, a robust supply chain and a rewards programme that is bigger-than-ever, our business is well-positioned."

Domino's, which operates primarily from franchise outlets, opened 178 stores worldwide during the second quarter.

The 65-year old brand currently has over 21,500 stores in more than 90 markets.

As at 1300 BST, Domino's New York-listed shares had put on 4% in pre-market trading.