Domino’s Pizza saw sales rise last quarter, but income dropped due to franchisee investments.
Global retail sales grew 5.6% year-on-year to US$4.67 billion. Net income fell 7.7% to $131.1 million, which the company said was partly due to a $24.7 million charge from its investment in China franchisee DPC Dash.
“Internationally, we continued to grow despite macro challenges. In the U.S., both delivery and carryout grew, driving meaningful market share gains within the U.S. pizza QSR [quick service restaurant] category,” said Domino’s CEO Russell Weiner.
“With what we believe are best-in-class unit economics, the largest advertising budget, a robust supply chain, and a rewards program that is bigger than ever, our business is well-positioned.”
Its diluted earnings per share were US$3.81, below LSEG estimates of $3.95 and falling 5.5% from one year ago.
Revenue was US$1.15 billion, up 4.3% year-over-year. This was due to rising supply chain revenues, Domino’s said, as well as higher U.S. franchise royalties.
U.S. same store sales rose by 3.4%, above estimates of 1.71%, while international same store sales were up 2.4%.
The company operated 21,536 stores globally, a net increase of 178 across the quarter.
Domino’s Pizza’s (NASDAQ: DPZ) share price closed at US$462.24, down from its previous close of $465.95. Its market capitalisation is $15.83 billion.
