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Domino's Is Extra Saucy After U.S. Same-Store Sales Beat

Domino's Pizza reports U.S. comparable-store sales that topped estimates for the first time in more a year.
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Shares of Domino’s Pizza  (DPZ) - Get Domino's Pizza, Inc. Report jumped double-digits Thursday after the company reported fourth-quarter results ahead of analysts expectations as it focuses on faster delivery and new promotions.

The Ann Arbor, Michigan-based company reported fourth-quarter earnings of $3.13 a share, a 19.5% year-over-year increase, on revenue that rose slightly to $1.15 billion. Analysts were expecting the company to report earnings of $2.98 a share on revenue of $1.13 billion.

The company also reported U.S. same-store sales increased 3.4% while international same store sales rose 1.7%. The company’s U.S. comps topped analysts' expectations of 2.3%, the first time in more than a year that the metric beat forecasts.

"Our relentless focus on our customers, our franchisees and the long-term growth and profitability of the Domino's business model helped us deliver a solid 2019 in the face of unique competitive headwinds,” said Domino's Pizza CEO Ritch Allison.

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The company’s strategy of opening new stores and launching new menu items aided the strong quarter, according to Allison.

Domino’s Pizza also is benefiting from a dismal quarter from rival Pizza Hut, which is owned by Yum! Brands  (YUM) - Get Yum! Brands, Inc. Report. Pizza Hut said competition led to a decline in sales.

Shares of pizza company were up nearly 20% in premarket trading Thursday to $355. The stock’s recent run-up has it back to even for the year after declining for most of 2020.