Domino's Pizza Shares Climb On Higher Q2 Profit, Orders; U.S. Comps Edge Up

(RTTNews) - Shares of Domino's Pizza, Inc. were gaining around 8 percent in pre-market activity on Nasdaq, after the world's largest pizza company reported Monday higher profit in its second quarter, primarily reflecting growth in supply chain revenues with strong order volume. Meanwhile, U.S. same store sales edged up, and the growth was slower than last year.

Russell Weiner, Domino's Chief Executive Officer, said, "I believe order growth is the most important driver of long-term success in our business. In a quarter where the broader U.S. QSR industry continued to face pressure on consumer demand, Domino's generated order count growth across both our delivery and carryout businesses, bringing millions of new customers to our brand."

Weiner added that these new customers strengthen the firm's long-term growth flywheel, and their orders power our supply chain business, fuel store growth, and drive market share.

In the second quarter, the pizza restaurant chain's net income grew 3.6 percent to $135.75 million from $131.09 million last year. Earnings per share were $4.07, up 6.8 percent from $3.81 a year ago, with lower sharecount.

Income from operations increased 3.1 percent year-over-year to $232.04 milion.

The company's revenue for the period rose 4.3 percent to $1.194 billion from $1.145 billion last year, primarily due to higher supply chain revenues and higher global franchise royalties and advertising revenues.

Supply chain revenues were benefited by higher order volumes, as well as an increase in the company's food basket pricing to stores.

The increases in U.S. franchise royalties and advertising revenues were primarily driven by an increase in the average number of U.S. franchise stores open during the period resulting from net store growth during the trailing four quarters.

The increases in revenues were partially offset by lower U.S. Company-owned store revenues as a result of the refranchising of certain U.S. Company-owned store markets.

Total Global retail sales were $4.850 billion, up from $4.670 billion a year ago, with growth in both U.S. and International stores.

Global retail sales growth, excluding foreign currency impact, was 3.0 percent.

U.S. same store sales growth edged up 0.1 percent, compared to a 3.4 percent increase last year. International same store sales, excluding foreign currency impact, dropped 0.1 percent, compared to prior year's growth of 21.4 percent.

Same store sales growth in U.S. Company-owned stores was 2.1 percent, compared to 2.6 percent last year. U.S. franchise stores same store sales remained flat, compared to a 3.4 percent increase a year ago.

On July 14, the Company's Board of Directors declared a $1.99 per share quarterly dividend for shareholders of record as of September 15, to be paid on September 30.

As of June 14, the Company had a total remaining authorized amount for share repurchases of $1.23 billion.

In pre-market activity on Nasdaq, the shares were trading at $349.00, 8.32 percent higher, after closing Friday's regular trading 2.37 percent lower.

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