Domino's Pizza beats sales estimates as heavy discounts boost demand

[October 13, 2022]   (Reuters) -Domino's Pizza Inc beat quarterly U.S. same-store sales estimates on Thursday, as heavy discounts helped boost demand for its pizzas and chicken wings amid decades-high inflation.

A Domino's Pizza sign sits on the top of a delivery car outside a restaurant in Los Angeles, California, U.S. July 18, 2018. REUTERS/Lucy Nicholson

The company has been doubling down on discounts and promotions, offering cheaper meals as part of its 'boost week' initiative and inflation relief deals, that has helped it capitalize on inflation-hit consumers.

Shares in the Michigan-based company rose 5.5% in premarket trade.

U.S. same-store sales at the world's largest pizza chain, rose 2% in the third quarter, compared with a 1.02% rise estimated by analysts, according to Refinitiv IBES.

Net income, however, fell to $100.5 million, or $2.79 per share, for the quarter ended Sept. 11, from $120.4 million, or $3.24 per share, a year earlier.

(Reporting by Granth Vanaik in Bengaluru; Editing by Shailesh Kuber)

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