Key facts
- Domino's Pizza reported second-quarter revenue of $1.19 billion, exceeding Wall Street estimates.
- The company's supply-chain business revenue rose 6.5% year-on-year to $731.7 million.
- US same-store sales saw a modest increase of 0.1%, falling short of analyst expectations.
- Rising costs led to a 4.7% increase in the cost of sales, impacting profitability.
- Quarterly earnings per share were $4.07, below the estimated $4.17.
Domino's Pizza surpassed Wall Street's revenue expectations for the second quarter, with its supply-chain business proving a key driver of growth. The company reported revenue of $1.19 billion, slightly exceeding the $1.18 billion estimated by analysts. This performance was bolstered by a 6.5% year-on-year increase in supply-chain revenue, which reached $731.7 million, supported by higher order volumes and a modest rise in food-basket pricing.
However, the company's restaurant operations faced challenges, with US same-store sales growing by only 0.1%, falling short of the 0.62% analysts had predicted. This slowdown reflects broader pressures on consumer spending in the United States, as households remain cautious due to higher living costs and labor market concerns.
Profitability was also affected by rising costs, as the cost of sales increased by 4.7% year-on-year. Consequently, Domino's posted earnings per share of $4.07, which was below the analyst estimate of $4.17. Despite these headwinds, shares of the Ann Arbor, Michigan-based company saw a rise of approximately 7% in premarket trading following the results.