Domino’s Pizza beat estimates for quarterly income and revenue on Thursday, as its new menu objects, together with cheeseburger and rooster taco pizzas, whipped up demand from Individuals ordering meals from the consolation of their houses.
Shares of the corporate rose practically 12 p.c 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 largest beneficiaries of the pandemic-induced lockdowns, is striving to maintain up the momentum of 18 months by opening new shops to chop supply instances and introducing contactless takeaway choices.
It has additionally raised menu costs and supply charges to deal with a surge in bills, triggered by greater uncooked materials costs and bills associated to COVID-19.
These efforts helped drive a 3.5 p.c rise in its US same-store gross sales, marking 41 consecutive quarters of will increase. Analysts had been anticipating a 1.3 p.c decline.
“You’ve typically requested if our gross sales progress may be weaker in markets that had extra totally reopened … the other pattern emerged by means of the second quarter, the place we noticed greater ranges of gross sales progress within the second quarter within the markets with fewer COVID-related restrictions,” Chief Govt Officer Ritch Allison mentioned on a post-earnings name.
Worldwide same-store gross sales progress of 13.9 p.c was additionally effectively above the 8.9 p.c bounce 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 p.c 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.