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Domino’s Pizza Inc reported fourth quarter revenue and profit that beat analysts’ projections, as the business reported sales growth at same stores of double-digits.
Domino’s announced that its top line received help by higher volumes of supply chains and equipment sales to stores in connection with its re-imaging campaign for stores. The company benefitted as well from one extra week during its fiscal year for sales.
The company announced it increased its dividend for the quarter to 38 cents per share or 23%.
Shares of the pizza chain have increased more than 13% the last year. They rose another 5.4% in trading before the opening bell on Thursday.
Sales at same-stores, which excluded stores either recently opened or recently closed, grew by 10.7% at the domestic franchise stores of Domino’s, as domestic stores company owned logged growth of 10%.
Analysts were anticipating growth of 6.3% at its franchised locations and 5.7% growth at its company owned locations.
An increase in royalties from the franchised locations and higher revenue from stores that were company owned contributed to the top line of the company.
Domino’s results generally have been stronger recently after its recipe for pizza was reworked with a thicker crust and a mix of different cheeses, after the business for many years fought a perception that its pizza was not as tasty as its competitors’ were, said a Wall Street analyst.
- Patrick Doyle the CEO at Domino’s said the network of solid franchisees had become more profitable during the years of positive sales growth at same stores.
In all during the quarter, the pizza chain reported $62.8 million in earnings equal to $1.18 per share, in comparison to $48 million equal to 85 cents per share for the same quarter one year ago.
Excluding certain items such as expenses for recapitalization and the extra week for sales, the company posted earnings of $1.15 per share which was up from the same period one year ago of 91 cents.
Revenue, which was boosted by the extra week, was up by 15% to end the quarter at $741.2 million. Analysts projected revenue of $707 million.