Domino's International Same-Store Sales Fail To Deliver, Shares Slip
Domino's Pizza Inc has reported a lower-than-expected increase in same-store sales at company owned US stores, sending its shares down 6% in premarket trade. Same-store sales at company owned outle...
Domino's Pizza Inc has reported a lower-than-expected increase in same-store sales at company owned US stores, sending its shares down 6% in premarket trade.
Same-store sales at company owned outlets in the United States rose 5.1% in the second quarter, but came in below Wall Street expectations of a 6.42% increase, according to Thomson Reuters I/B/E/S, only the second miss in nine quarters.
Analysts had raised their estimates by over 7% since the end of April when the company reported stellar first-quarter results. Comparable store sales in its international business rose 4%, but also missed estimate of 5.1%.
The company operates 5,692 stores - company owned and franchises - in the United States and 9,430 stores in international markets.
Income And Revenue
Net income rose to $77.4 million, or $1.78 per share, in the second-quarter ended June 17, from $65.7 million, or $1.32 per share, a year earlier.
Excluding one-time items, the company earned $1.84 per share.
Total revenue rose about 24% to $779.40 million, helped by changes in the company's accounting standard. Analysts on average had expected revenue of $784.61 million.
Supply chain revenue from the company's franchisees rose 13% to $440.9 million.
Domino's earns royalty fees from franchise stores and charges them for the ingredients and equipment it provides.
The company's shares have gained 50 percent this year, outperforming those of rivals such as Yum Brands' Pizza Hut and Papa John's International Inc.