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Sequentially slower growth in food services in June showed
consumers were still looking to stretch their budgets as they
recovered from high inflation, despite a better-than-expected
overall U.S. retail sales report signaling economic resilience.
Domino's U.S. same-store sales growth of 4.8% in the quarter
fell just short of expectations of 4.91% growth, according to
LSEG data.
The company has been catering to consumers looking for cheaper
options through its refreshed loyalty program in the U.S. as
well as several offers to draw in customers.
Analysts, however, had expected tougher competition for Domino's
this quarter, as fast-food peers also ramped up deals and
promotions on their menu items.
Still, lower supply-chain costs and resilience in its same-store
sales in the U.S. helped the world's largest pizza maker earn a
profit of $4.03 per share, compared with market expectations of
$3.68.
"We had positive order counts in our delivery and carry-out
businesses, and across all income cohorts. Our strategy is
resonating with customers," said Russell Weiner, Domino's chief
executive officer.
Domino's reported total revenue of $1.10 billion in the second
quarter, roughly in line with estimates.
The company maintained its long-term outlook of more than 7%
annual global retail sales growth.
However, Domino's suspended its long-term target of 1,100 global
net stores after its Australia-based master franchise said
earlier this week it was closing low-volume stores in Japan and
France.
(Reporting by Juveria Tabassum; Editing by Vijay Kishore and
Pooja Desai)
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