Domino's Pizza profit rises, but sees overseas slowdown
Jul. 25, 2017
ANN ARBOR, Mich. (AP) — Domino's Pizza reported Tuesday that its profit jumped 33 percent in its second quarter as more people ordered its pies, but the pizza chain was hit by a slowdown in sales overseas.
Shares of Domino's Pizza Inc. tumbled more than 8 percent Tuesday.
Domino's international sales rose 2.6 percent at established stores during the quarter that ended June 18, falling short of the 5.1 percent rise analysts had expected, according to FactSet. It was also far less that the 7.1 percent increase Domino's reported in the same period a year ago.
Domino's CEO J. Patrick Doyle said the overseas numbers "weren't exactly the type of results we've all come to expect within this high-performing business segment."
He said weakness in the U.K. was part of the reason for the disappointing results and said the company is working on remedies, including trying to get more people there to order pizza online.
In the U.S., sales rose 9.5 percent at established stores, beating the 7.9 percent rise analysts expected.
Overall, the company reported net income of $65.7 million, or $1.32 per share, in the quarter. The results surpassed Wall Street expectations of $1.22 per share, according to Zacks Investment Research. In the same period last year, Domino's reported net income of $49.3 million, or 98 cents per share.
Revenue rose 15 percent to $628.6 million, beating the $613.4 million analysts expected, according to Zacks.
Based in Ann Arbor, Michigan, Domino's has more than 14,000 stores around the world.
Its shares fell $18.02 to $195.95 in afternoon trading.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on DPZ at https://www.zacks.com/ap/DPZ
Keywords: Domino's Pizza, Earnings Report