Domino's same-store sales at owned U.S. outlets miss estimates

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Reuters
Last Updated : Jul 19 2018 | 5:35 PM IST

(Reuters) - Domino's Pizza Inc reported a lower-than-expected increase in same-store sales at company owned U.S. stores on Thursday, sending its shares down 6 percent in premarket trade.

Same-store sales at company owned outlets in the United States rose 5.1 percent growth in the second quarter, but came in below Wall Street expectations of a 6.42 percent increase, according to Thomson Reuters I/B/E/S, only the second miss in nine quarters.

Analysts had raised their estimates by over 7 percent since the end of April when the company reported stellar first-quarter results.

Comparable store sales in its international business rose 4 percent, but also missed estimate of 5.1 percent.

The company operates 5,692 stores - company owned and franchises - in the United States and 9,430 stores in international markets.

Net income rose to $77.4 million, or $1.78 per share, in the second-quarter ended June 17, from $65.7 million, or $1.32 per share, a year earlier.

Excluding one-time items, the company earned $1.84 per share.

Total revenue rose about 24 percent to $779.40 million, helped by changes in the company's accounting standard. Analysts on average had expected revenue of $784.61 million.

Supply chain revenue from the company's franchisees rose 13 percent to $440.9 million.

Domino's earns royalty fees from franchise stores and charges them for the ingredients and equipment it provides.

The company's shares have gained 50 percent this year, outperforming those of rivals such as Yum Brands' Pizza Hut and Papa John's International Inc.

(Reporting by Aishwarya Venugopal in Bengaluru; editing by Sriraj Kalluvila)

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First Published: Jul 19 2018 | 5:24 PM IST

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