Domino's revenue jumps
more than expected
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[October 18, 2016]
(Reuters) -
Domino's
Pizza Inc <DPZ.N> on Tuesday reported a bigger-than-expected 17 percent
jump in quarterly revenue as its U.S. division overcame intense
competition that is taking a bite out of industry sales.
Sales at domestic franchise units open at least one year were up 12.9
percent in the third quarter ended Sept. 11. Analysts had expected a
rise of 9.4 percent, according to polling firm Consensus Metrix.
Domino's results come as Wall Street analysts are tempering expectations
for rivals such as McDonald's Corp and Dunkin' Brands Group Inc , amid
intensifying competition from upstart chains, meal-kit sellers and
grocery stores - where prices versus restaurants are at a 30-year low.
The world's biggest pizza delivery chain is a leader in digital
ordering. Its main rival, Yum Brands Inc's <YUM.N> Pizza Hut, which has
been struggling, reported a 2 percent decline in U.S. same-store sales
for the latest quarter.
Domino's net income jumped almost 25 percent to $47.2 million, or 96
cents per share, topping the average analyst estimate of 90 cents per
share, according to Thomson Reuters I/B/E/S.
The Ann Arbor, Michigan-based company had 12 percent fewer shares in the
latest quarter, compared with the year-earlier period, which also
boosted per-share earnings.
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![](../images/101816pics/busine23.jpg)
A worker carries a pizza for delivery as he exits a Domino's pizza
store in Sydney, Australia, August 12, 2015. REUTERS/David Gray/File
Photo
![](../images/ads/current/demay_inv-lda081412.png)
Total
revenue climbed 17 percent to $566.7 million, beating analysts' average estimate
of $542.6 million, also helped by higher supply chain revenue and new store
openings.
Domino's shares were up 3 percent at $156.70 in premarket trading.
(Reporting by Lisa Baertlein in Los Angeles; Editing by Martina D'Couto)
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