Domino's quarterly sales rise 7 percent, U.S. sales beat
Oct 15 (Reuters) - Domino's Pizza Inc, the second-largest U.S. pizza chain, reported a 7 percent rise in quarterly revenue as sales rose more than expected in a tough U.S. market.
New menu items such as handmade pan pizzas and chicken tacos, along with overseas growth, have driven sales at Domino's while many other U.S. restaurant operators have struggled.
Domino's, whose competitors include Yum Brands Inc's Pizza Hut, Little Caesars Pizza and Papa John's International Inc, franchises most of its restaurants, reducing risk and ensuring a steady stream of royalties.
As of Dec. 30, Domino's had 4,513 franchised stores and 394 company-owned stores in the United States. It also had 5,327 outlets outside the United States, all franchised.
U.S. same-store sales rose 5.4 percent in the third quarter ended Sept. 8. Eleven analysts polled by Consensus Metrix expected 4.4 percent growth. International same-store sales, excluding currency fluctuations, rose 5 percent.
International sales contributed about 14 percent to overall revenue compared with 13 percent a year earlier.
Domino's revenue of $404 million just beat the $402.6 million analysts had expected, according to Thomson Reuters I/B/E/S.
Net income rose about 18 percent to $30.6 million, or 53 cents per share.
On an adjusted basis, Domino's earned 51 cents per share, missing the average analyst estimate by a cent as general and administrative expenses rose about 8 percent to $53.8 million.
Shares of the Ann Arbor, Michigan-based company, which have risen more than 80 percent in the last year, closed at $68.85 on the New York Stock Exchange on Monday.
(Reporting by Aditi Shrivastava in Bangalore; Editing by Ted Kerr)