Domino’s Pizza Inc’s shares hit a record high after the company reported better-than-expected quarterly sales and profit, helped by store openings and a jump in revenue from the services and products it provides to franchisees. Domestic same-store sales grew 9.7 percent year over year, while worldwide stores recorded a 7.1 percent increase.
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Domino’s had 12,692 stores globally as of March 27, out of which 7,691 are franchises outside the United States.
Same-store sales at company-owned stores in the U.S. rose 9.1%, outpacing the 5.7% average forecast of analysts polled by research firm Consensus Metrix.
Shares gained nearly 5 percent in morning trading on Thursday.
Domino’s Pizza also saw a 7.1% increase in worldwide store sales.
Domino’s Pizza Inc.’s shares rose $8.56 to $145.45 in midday trading. Up to Wednesday’s close of $136.89, they had risen almost 25 percent this year. This was attributed mostly to higher consolidated operating margins driven by higher sales and store growth.
Saturday-night-in stalwart Domino’s Pizza has posted better-than-expected quarterly sales as it continued to boost its global presence.
Analysts surveyed by Zacks Investment Research called for earnings of 93 cents per share.
Domino’s net income rose to $49.3m, or 98c per share, in the latest quarter, from $45.9m, or 81c per share, a year earlier. Sales came in at $547.3 million, ahead of analysts’ expectations of $533.4 million.
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President and CEO, Patrick Doyle, commented: “I am pleased with our impressive top and bottom line results during the second quarter, and the performance of our franchisees in the US and across the globe”.
