Domino's shares slip as same-store sales growth slows

Domino's shares slip as same-store sales growth slows

REUTERS: Domino's Pizza Inc , the biggest U.S. pizza delivery chain, reported slower same-store sales growth in the third quarter, sending its shares down 3 percent in pre-market trade.

The company's comp-store sales growth at its own restaurants slumped to 8.4 percent from 13.8 percent a year earlier. Still, it beat the 6.6 percent rise expected by analysts polled by research firm Consensus Metrix.

Domino's shares have gained 31.3 percent this year, as the company has outperformed rivals such as Yum Brands' Pizza Hut.

The company posted a better-than-expected profit on Thursday on higher demand in the United States. Net income rose to US$56.4 million, or US$1.18 per share, from US$47.2 million, or 96 cents per share, a year earlier.

Excluding items, the company earned a profit of US$1.27 per share, beating analysts' average estimate of US$1.22, according to Thomson Reuters I/B/E/S.

Revenue in its supply chain business, through which it supplies ingredients and machinery to franchisees, rose 13.3 percent to US$402.1 million. Supply chain revenue accounted for 62.5 percent of the company's revenue in the quarter.

Total revenue rose 13.6 percent to US$643.6 million, above the average analyst estimate of US$627.4 million.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sriraj Kalluvila)

Source: Reuters

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