By Neil J Kanatt (Reuters) -Domino’s Pizza surpassed analysts’ expectations for second-quarter U.S. same-store sales on Monday, driven by new items on the menu and promotions, amid persisting macroeconomic uncertainties, sending shares up about 5% in early trade. The world’s largest pizza chain introduced items such as the parmesan-stuffed crust pizza to its list, and […]
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Domino’s Pizza beats quarterly sales estimate on strong US demand
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By Neil J Kanatt
(Reuters) -Domino’s Pizza surpassed analysts’ expectations for second-quarter U.S. same-store sales on Monday, driven by new items on the menu and promotions, amid persisting macroeconomic uncertainties, sending shares up about 5% in early 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 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% rise in same-store sales in the U.S. for the quarter ended June 15, exceeding analysts’ average estimate of a 2.21% rise, according to data compiled by LSEG. That marked its first beat in five quarters.
“Domino’s has a competitive advantage relative to peers in the sector from the discounts they offer that are difficult to match profitably,” said Northcoast Research analyst Jim Sanderson.
The company’s online sales grew, aided by discounts and its DoorDash partnership, which doubled third-party delivery sales to about 5%, according to M Science analyst Matt Goodman.
Momentum from third-party aggregators and discounts will help drive Domino’s sales ahead of peers, Sanderson added.
International same-store sales grew 2.4%, also ahead of the estimate of 1.71% growth, while quarterly revenue rose 4.3% 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 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)