Key things
- Domino’s earnings increased as sales grew in its international stores.
- Total sales missed forecasts on lower market basket prices for stores and fewer orders from customers.
- The company expects an increase in orders from the deal with Uber Technologies.
Dominoes (DPZ) shares rose after the pizza delivery chain reported better-than-expected earnings, boosted by its overseas business.
Domino’s reported fiscal second-quarter 2023 earnings of $3.08 per share, a 9.2% jump and more than analysts expected. The company noted that international same store sale rose 3.6%, while U.S. same-store sales rose 0.1%.
Total revenue fell 3.8% to $1.02 billion. The company blamed the decline on lower Supply Chain Revenues falling by 2.4%. market basket prices for shops and also less orders due to higher prices.
CEO Russell Weiner said Domino’s is focused on improving its delivery growth in the U.S. He added that more than two-thirds of its locations worldwide will be able to accept orders from Uber Eats following a deal recently struck with Uber Technologies (UBER) to place a Domino’s offer on the Uber Eats and Postmates apps.
Shares of Domino’s Pizza rose 2% in early trading on Monday after the news, hitting their highest level since last August.
YCharts