Staff garnish pizza at a Domino’s Pizza location.
Jason Alden | Bloomberg | Getty Images
Dominos pizza on Thursday reported that US sales rose 3.5% in the most recent quarter, despite tough comparisons to skyrocketing sales during last year’s lockdown.
The company’s shares rose more than 2% in pre-trading hours.
Here’s what the company said, relative to Wall Street expectations, based on an analyst survey by Refinitiv:
- Earnings per share: $ 3.12 adjusted versus $ 2.87 expected
- Revenue: Expected $ 1.03 billion versus $ 972.3 million
The pizza chain reported net income of $ 116.6 million, or $ 3.06 per share, for the second quarter, up from $ 118.7 million, or $ 2.99 per share, last year.
Excluding recapitalization expenses, Domino earned $ 3.12 per share, beating the $ 2.87 per share that Refinitiv surveyed analysts had expected.
Net sales rose 12.2% to $ 1.03 billion, beating expectations of $ 972.3 million.
In the United States, Domino’s saw positive sales growth in the same business. On a two-year basis, US sales in the same store grew 19.6% for the quarter. The segment’s strong performance this quarter is a sign that the company can avoid a slump in sales due to pizza fatigue.
Outside the US, Domino’s sales in the same store increased 13.9% year over year and 15.2% year over year. Last year, Domino’s international business was impacted by temporary restaurant closings in markets with stricter lockdowns than the United States.
Domino added 238 new locations worldwide, including 35 in its home market.
Additionally, Domino’s announced that it has completed a $ 1.85 billion recapitalization transaction previously announced. The company has also entered into a $ 1 billion accelerated share buyback agreement with an undisclosed party that enables the company to receive and retire more than 2.25 million shares.