A Domino’s Pizza food delivery courier drives a moped away from a Domino’s Pizza store in Hanwell, London.
Jason Alden| Bloomberg | Getty Images
Domino’s Pizza on Thursday reported quarterly earnings and revenue that topped analysts’ expectations after strong U.S. sales, despite increased competition.
Shares of the company soared 17% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $3.13, adjusted, vs. $2.98 expected
- Revenue: $1.15 billion vs. $1.13 billion expected
The pizza chain reported fiscal fourth-quarter net income of $129.3 million, or $3.12 per share, up from $111.6 million, or $2.62 per share, a year earlier. Higher royalty revenue from franchisees and lower general and administrative expenses drove the increase in net income.
Excluding items, Domino’s earned $3.13 per share, topping the $2.98 per share expected by analysts surveyed by Refinitiv.
Net sales rose 6.3% to $1.15 billion, beating expectations of $1.13 billion.
Domino’s reported U.S. same-store sales growth of 3.4%, topping Wall Street’s estimates of 2.3%. The chain has been facing greater competition from the likes of UberEats and DoorDash, putting pressure on Domino’s U.S. delivery sales.
In response to the trend, the pizza chain has been trying to grow its carryout sales and cut delivery times by strategically adding more U.S. locations. Domino’s added 141 net new U.S. restaurants in the fourth quarter.
“Our relentless focus on our customers, our franchisees and the long-term growth and profitability of the Domino’s business model helped us deliver a solid 2019 in the face of unique competitive headwinds,” CEO Ritch Allison said in a statement.
International same-store sales increased by 1.7% in the quarter.
The pizza chain also reaffirmed its two-to-three year outlook. Domino’s expects U.S. same-store sales growth in a range of 2% to 5% and global retail sales growth of 7% to 10%.