Domino’s Pizza profit, U.S. sales beat estimates as more people dine out
Domino’s Pizza Inc (DPZ.N) on Thursday beat Wall Street’s expectations for quarterly profit and U.S. sales as the fast food chain benefited from easing dining restrictions as well as accelerated vaccine rollouts in the country.
Other fast food chains, including Pizza Hut owner Yum Brands Inc (YUM.N), McDonald’s (MCD.N) and Chipotle Mexican Grill Inc (CMG.N), have also reported a jump in quarterly revenue, as the industry got a boost from higher consumer spending aided by U.S. stimulus checks.
The delivery business of the world’s largest pizza chain, especially outside U.S, remained strong.
In its international markets, where restrictions are more stringent, people chose to order-in, helping same-store sales of the company grow 11.8% in the first quarter. Analysts were expecting a 6.32% rise, according to IBES data from Refinitiv.
The company said sales at its U.S. stores open for more than a year rose 13.4% in the quarter ended March 28, exceeding estimates of a 9.54% gain.
Net income fell to $117.8 million, or $3 per share, from $121.6 million, or $3.07 per share, a year earlier. However, that surpassed expectations of $2.94 per share.
Shares of Domino’s fell 2.2% to $395.02 in early trading as the company missed revenue expectations by a whisker. Its stock had gained about 30% last year.
Total revenue rose 12.7% to $983.7 million in the first quarter, below analysts’ estimates of $984.77 million.