Domino's Profit Rises, Though Results Fall Short of Estimates
October 08 2015 - 9:10AM
Dow Jones News
Domino's Pizza Inc. said profit rose in its latest quarter,
though results fell short of analysts' estimates, as continued
sales growth in the U.S. was countered by some currency headwinds
overseas.
Domino's has posted generally strong results in recent years
after reworking its pizza recipe with thicker crust and a new mix
of cheeses as the company fought the perception that its pies
weren't as tasty as competitors'.
In the third quarter ended Sept. 6, domestic same-store sales
jumped 10.5% and overseas, excluding foreign exchange volatility,
same-store sales climbed 7.7%. The company didn't detail currency
exchange impacts. Domino's has pushed to grow its business
overseas. The chain added a net 194 locations during the period,
mostly internationally.
Overall, Domino's reported a profit of $37.8 million, or 67
cents a share, up from $35.6 million, or 63 cents a share, a year
earlier. Besides currency impacts, the company said a $5.7 million
charge linked to its casualty insurance program weighed on
profit.
Revenue grew 8.5% to $484.7 million on higher royalties from
franchisees, higher supply-chain revenues and increased sales of
equipment to stores.
Analysts polled by Thomson Reuters had forecast earnings of 74
cents a share on revenue of $487 million.
During the quarter, Domino's repurchased $40.9 million of its
shares.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 08, 2015 08:55 ET (12:55 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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