Domino's Pizza (DPZ) -) posted stronger-than-expected third quarter earnings Thursday as higher prices, and new delivery fees, offset a pullback in U.S. sales over the hot summer months.
Domino's said profits for the three months ending in September surged nearly 50% from last year to $4.18 per share, blasting Street forecasts of around $3.30 per share. The total was flattered, however, by gains from its investment in China-based DPC Dash as well as a one-off tax boost.
Global revenues slipped 3.8% to $1.03 billion, missing analysts' estimates, as same-store sales in the U.S. fell 0.6% amid easing demand over the unusually warm summer.
Looking into the final months of the year, Domino's said it sees 2023 sales to ease "modestly below" the mid-point of the 4% to 8% growth outlook it has pegged for the next three years,
"We continue to execute on our initiatives to drive sustainable growth in the U.S.," said CEO Russell Weiner. "Our 'Summer of Service' initiative and the hard work of our franchisees and team members have brought delivery times back to pre-pandemic levels."
"Domino's Rewards is engaging more customers, and our integration with Uber's marketplace is on track," he added. "We are ready and excited to deliver the incremental orders both programs will bring in 2024 and beyond."
Domino's shares were marked 2.45% higher in early Wednesday trading immediately following the earnings release to change hands at $362.79 each, 11.5%.
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