Key Takeaways
- Domino's revenue increased as international store sales grew.
- Overall sales fell short of expectations due to lower basket prices for stores and a decrease in customer orders.
- The company expects an increase in orders from its deals with Uber Technologies.
Domino (DPZ) shares climbed after the pizza delivery chain reported better-than-expected earnings, boosted by its overseas business.
Domino's reported earnings of $3.08 per share in the second quarter of fiscal 2023, a jump of 9.2% and more than analysts' forecasts. The company noted that international same-store sales rose 3.6%, while U.S. same-store sales increased 0.1%.
Overall revenue fell 3.8% to $1.02 billion. The company blamed the decline on lower supply chain revenue attributable to a 2.4% decline in the consumer basket price in stores, as well as lower orders due to higher prices.
CEO Russell Weiner said Domino's is focused on improving its US shipment growth. Uber Eats and Postmates apps.
Domino's Pizza shares rose 2% in early trading on Monday after the news hit their highest level since last August.
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Source: investopedia.com