© Reuters. FILE PHOTO: A Domino’s Pizza restaurant is seen in Los Angeles, California, U.S. July 18, 2018. REUTERS/Lucy Nicholson
By Praveen Paramasivam
(Reuters) -Domino’s Pizza Inc beat estimates for quarterly income and revenue on Thursday, as its new menu gadgets, together with cheeseburger and rooster taco pizzas, whipped up demand from People ordering meals from the consolation of their properties.
Shares of the corporate rose practically 12% to hit a report excessive of $526.29, because the pizza chain additionally approved a brand new $1 billion share buyback plan.
Domino’s, one of many greatest beneficiaries of the pandemic-induced lockdowns, is striving to maintain up the momentum of 18 months by opening new shops to chop supply occasions and introducing contactless takeaway choices.
It has additionally raised menu costs and supply charges to deal with a surge in bills, triggered by increased uncooked materials costs and bills associated to COVID-19.
These efforts helped drive a 3.5% rise in its U.S. same-store gross sales, marking 41 consecutive quarters of will increase. Analysts have been anticipating a 1.3% decline.
“You’ve got typically requested if our gross sales progress could be weaker in markets that had extra totally reopened … the other development emerged by the second quarter, the place we noticed increased ranges of gross sales progress within the second quarter within the markets with fewer COVID-related restrictions,” Chief Government Officer Ritch Allison stated on a post-earnings name.
Worldwide same-store gross sales progress of 13.9% was additionally properly above the 8.9% leap anticipated by analysts. That enhance got here from recent lockdowns in international locations, together with the UK and India, the place individuals relied on on-line ordering.
Complete income rose 12.2% to $1.03 billion for the second quarter ended June 20, beating estimates of $972.3 million, in accordance with IBES knowledge from Refinitiv.
On an adjusted foundation, Domino’s earned $3.12 per share, exceeding estimates of $2.87.
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