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Domino's beats estimates as franchisees boost demand

Published 07/21/2016, 07:39 AM
Updated 07/21/2016, 08:21 AM
© Reuters. People pass by a Domino's Pizza restaurant in New York

(Reuters) - Domino's Pizza Inc (N:DPZ) reported better-than-expected quarterly sales on Thursday, helped by increased revenue from the services and products it provides to franchisees and the addition of stores in markets outside the United States.

The company said a net 215 stores were opened outside the United States, helping to drive up total international sales by 11 percent in the second quarter ended June 19. Sales at international outlets open for at least a year rose 7.1 percent.

Domino's had 12,692 stores globally as of March 27, out of which 7,691 are franchises outside the United States.

Same-store sales at company-owned stores in the United States rose 9.1 percent, outpacing the 5.7 percent average forecast of analysts polled by research firm Consensus Metrix.

Domino's shares were up 1.5 percent at $39 in light premarket trading. Up to Wednesday's close of $136.89, they had risen nearly 25 percent this year.

Yum Brands Inc's (N:YUM) Pizza Hut, one of Domino's biggest rivals, reported flat same-store sales in the latest quarter.

Domino's net income rose to $49.3 million, or 98 cents per share, in the latest quarter, from $45.9 million, or 81 cents per share, a year earlier.

Analysts on average had expected earnings of 94 cents per share, according to Thomson Reuters I/B/E/S.

Total sales rose 12 percent to $547.3 million, beating the average analysts' estimate of $533.4 million.

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