Shares of Domino's Pizza (DPZ) - Get Domino's Pizza, Inc. Report jumped Thursday after the fast food pizza chain reported second-quarter earnings ahead of estimates as domestic comparable sales were surprisingly strong.
The Ann Arbor, Michigan, company reported second-quarter earnings of $3.12 a share on revenue of $1.03 billion. Analysts were expecting the company to report profit of $2.87 a share on revenue of $973.5 million.
"We are watching our two-year sales trends anchored to pre-Covid fiscal 2019 results. I am pleased that in the second quarter our cumulative two-year same stores sales were up 19.6% domestically and 15.2% internationally, signifying meaningful and sustained growth," CEO Ritch Allison said.
Domino's shares jumped 10.8% to $521.10 in trading Thursday.
Domino's also announced a new share repurchase program of up to $1 billion of common stock. This new program replaces its previous $1 billion stock repurchase efforts.
Domino's also declared a quarter dividend of 94 cents a share, payable Sept. 30, to shareholders of record on Sept. 15.
"I am very pleased with our strong global retail sales and store growth momentum during the second quarter," Allison said.
Earlier this year, Domino's jumped following reports that activist investor Bill Ackman and his Pershing Square Capital fund took a 6% stake in the company.
Ackman noted his stake was priced at around $330 a share, in comments that were reported from The Wall Street Journal's "Future of Everything Festival" in New York.