Domino's Pizza reports 33% year-over-year rise in fiscal Q3 earnings to US$22.1M, buoyed by strong results overseas, solid U.S. performance
ANN ARBOR, Michigan
October 18, 2011
– Domino's Pizza Inc.'s fiscal third-quarter net income rose 33 percent, buoyed by strong results overseas and a solid performance in the U.S.
The pizza company's performance adds to momentum it has gained since revamping its pizza recipes and heavily advertising the changes. Since then, it has turned to a nontraditional marketing campaign built on publicizing customer comments, both positive and negative, through social media and other channels.
Domino's earned $22.1 million, or 36 cents per share, for the period ended Sept. 11. That's up from $16.6 million, or 27 cents per share, a year earlier.
Excluding the 1 cent per share impact of a higher share count, earnings were 35 cents per share.
That beat the 34 cents per share that analysts polled by FactSet expected, on average.
"In the face of these uncertain economic times, Domino's has continued to prove its resiliency. This quarter is yet another example of how increasing loyalty from our customers is driving terrific results around the world," President and CEO J. Patrick Doyle said in a statement.
The Ann Arbor, Mich., chain said Tuesday that its performance also benefited from lower interest expenses because of reduced debt and a lower effective tax rate.
Revenue increased 8 percent to $376.3 million from $347.4 million, helped by improved results for its domestic franchise and supply chain operations as well as strength abroad.
Wall Street predicted revenue of $372.5 million.
Revenue at U.S. restaurants open at least a year climbed 3 percent, while the metric rose 8.1 percent internationally. This figure is a key indicator of a restaurant operator's health because it excludes results from restaurants recently opened or closed.
Domino's has 9,541 franchised and company-owned stores in the U.S. and more than 70 international markets.
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