Domino's Pizza Q3 revenue slightly beats estimates on net store growth
DPZ•Domino's Pizza reported third-quarter revenue of $1.19 billion, up 3.4% and slightly above the $1.18 billion estimate. Net income rose 9.2% to $152.2 million, beating estimates, and the company repurchased $73.6 million in shares.
1. Revenue and income
Domino's Pizza's third-quarter revenue rose 3.4% to $1.19 billion, slightly above analyst estimates of $1.18 billion. Net income increased 9.2% to $152.2 million, compared with an estimated $144.72 million. Earnings per share were $4.60, and U.S. same-store sales grew 0.3%.
2. Growth drivers
The company said higher supply-chain revenue, driven by increased order volumes and a 2.2% rise in food basket pricing, contributed to revenue growth. Higher U.S. and international franchise royalties and fees were driven by net store growth. Supply-chain gross margin rose 0.9 percentage points, mainly due to procurement productivity.
3. Repurchases and outlook
Domino's repurchased $73.6 million in shares during the quarter. The company did not provide specific financial guidance for future quarters or full-year results in the release.
