|
Shares of the Ann Arbor, Michigan-based company, which have
risen about 47% this year, were down about 5% before the bell.
The world's largest pizza chain has thrived during the health
crisis as diners staying at home craved more comfort food, but
that came at a cost for the company, which spent millions on
hiring more staff, bonuses, sick-pay policies and sanitary
supplies.
Still, sales at Domino's U.S. stores open for more than a year
rose 17.5% in the third quarter ended Sept. 6, exceeding Wall
Street estimates of 13.14%, according to IBES data from
Refinitiv.
The resumption of sports leagues such as the National Basketball
Association and the National Hockey League has also boosted
demand for pies and chicken wings.
Domino's has been focusing on tech innovations and has also
broadened its menu with additions such as chicken tacos and
cheeseburger pizzas in order to keep its customers from
switching to rivals McDonald's <MCD.N>, Papa John's <PZZA.O> and
Pizza Hut <YUM.N>, among others.
The company reported net income of $99.1 million, or $2.49 per
share, compared with $86.4 million, or $2.05 per share, a year
earlier.
Wall Street analysts had forecast earnings of $2.79 per share.
General and administrative costs rose 9.5% to $91.7 million. The
pizza chain spent $108.1 million, a 20.8% rise, on advertising
in the United States in the quarter.
Total revenue rose 17.9% to $967.7 million, beating expectations
of about $953 million.
(Reporting by Nivedita Balu in Bengaluru; Editing by Aditya Soni
and Krishna Chandra Eluri)
[© 2020 Thomson Reuters. All rights
reserved.] Copyright 2020 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
