Domino’s Pizza rose the most in more than two years after third-quarter profit and sales topped estimates, lifted by frugal consumers looking for deals as they cope with a still-shaky economy.
Earnings climbed to 63 cents a share last quarter, the Ann Arbor, Michigan-based company said today in a statement. That exceeded the 61 cents estimated by analysts on average, according to data compiled by Bloomberg. Revenue rose to $446.6 million, beating the $434.2 million predicted.
Domino’s is enticing consumers with offers such as two pizzas for $5.99 each, providing a low-cost option for Americans struggling with stagnant wage growth. Domino’s also is rolling out new menu items and a “pizza theater” that lets customers see how their food is prepared.
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“Our franchisees continued to drive vigorous store growth worldwide and have embraced our ‘pizza theater’ store reimage program in neighborhoods around the world,” Chief Executive Officer J. Patrick Doyle said in the statement.
The stock jumped 11 percent to $84.30 at the close in New York, the biggest one-day gain since February 2012. The shares, which closed at a record high, have gained 21 per cent this year.
Bloomberg News edited by HI