Shares of Domino's Pizza, (DPZ - Get Report) the world's largest pizza chain based on sales, fell on Tuesday as it reported that second-quarter net income exceeded estimates but revenue missed expectations.
Net income rose 19% to $92.4 million, or $2.19 a share, from $77.4 million, or $1.78, in the year-earlier period, versus analyst estimates for EPS of $2.02, according to FactSet. Global revenue at the Ann Arbor, Mich., company rose 4.1% to $811.6 million from $779.4 million, however, compared to analyst estimates of $836.6 million.
Domino's shares closed off 8.7% to $246.54.
The company reported that same-store sales rose 3% in the U.S. and 2.4% internationally. Shares outstanding fell 3.1% in the quarter to 42.2 million.
Global retail sales rose 5.1% in the period, or 8.4% excluding currency fluctuations, Domino's reported.
According to Domino's, the revenue increase stemmed mainly from the company operating more stores in the trailing four quarters and from the growth in U.S. and overseas same-store sales.