Domino’s Pizza Third Quarter Revenue

Domino’s Pizza (DPZ) posted better-than-expected earnings and sales in its third quarter on Thursday helped by higher supply chain revenues from increased volumes despite a slow-down in same store sales growth.

The company, which operates more than 14,400 stores, generated total revenue of $643.6 million in the three months ended September 10, up 13.6% from the corresponding quarter of the prior year and surpassing the mean estimate of analysts polled by Capital IQ for revenue of $628.4 million. Adjusted diluted earnings per share rose by 19.3% to $1.27, beating the Street’s estimate for $1.23 per share.

The double-digit growth in revenue was attributed by the company “primarily to higher supply chain revenues from increased volumes”. It added that higher same store sales and store count growth in its domestic and international markets had also contributed to the increase in revenues.

While same store sales growth rose, the pace of expansion was softer than in the previous year. Domestic company-owned sales store sales grew 8.4% in the third quarter compared with 13.8% for the same period a year ago. Similarly domestic franchise stores grew 8.4%, down from the 12.9% growth seen in the third quarter of 2016.

And while international stores, excluding currency impact, posted sales growth of 5.1%, that was also down from the 6.6% reported for the same stores a year ago.

The company also declared a 46 cent per share quarterly dividend to be paid on December 29, 2017.

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