Domino’s Pizza serves up tasty set of better-than-expected results driven by international expansion
Saturday-night-in stalwart Domino's Pizza has posted better-than-expected quarterly sales as it continued to boost its international presence.
The figures
Net income at the pizza delivery leader rose 7.3 per cent to $49.3m (£37.5m) in the second quarter to 19 June, up from $45.9m in the same period of last year.
Total sales grew 12 per cent to $547.3m, driven mainly by higher supply chain revenues from increased volumes and store growth.
In the US, same-store sales rose 9.1 per cent. A Consensus Metrix poll had predicted same-store US sales would rise 5.7 per cent.
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Overall, international sales grew 11 per cent, while sales at international outlets open for at least a year grew 7.1 per cent. This marked the 90th consecutive quarter of international same-store sales growth.
Diluted earnings per share was 98 cents for the second quarter – up 21 per cent on the same period of 2015.
In pre-market trading in the US, Domino's share price was up almost one per cent to 136.89 cents.
Why it's interesting
In the second quarter, Domino's opened a net 215 stores outside of America and 244 in total.
Domino's said its double digit revenue growth was driven in part by increased sales at both its domestic franchise and company-owned stores, as well as its higher international store count.
However, its net income was partially offset by higher general and administrative expenses as a result of its 2015 recapitalisation.
Read more: Domino's share price jumps after tasty fourth quarter
The company became the first to trial a pizza delivery robot in March, but it looks like its motorbike-delivery services will still be running for the foreseeable future.
What Domino's said
Chief executive and president J Patrick Doyle:
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.
The business continued to progress in a very positive direction.
In short
A tasty set of results from Domino's, driven by impressive expansion.