Domino’s Pizza Rises as US Sales Gain Across Income Groups
(Bloomberg) -- Domino’s Pizza Inc.’s same-store sales in the US exceeded first-quarter expectations, a promising sign for the company’s continued turnaround.
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Domestic same-store sales rose 5.6% for the period ended March 24, the pizza company said Monday, ahead of analysts’ estimates for a 3.9% gain.
The US results “came through positive order counts in both our carryout and delivery businesses for the second quarter in a row,” Chief Executive Officer Russell Weiner said in a statement. Weiner said orders were generated from customers “across all income cohorts.”
Shares rose 4% at 9:46 a.m. in New York. The stock is up 21% this year through April 26, topping the 6.9% advance of the S&P 500 Index.
The sales result was notable because it came “amid challenged restaurant spending for lower-income consumers,” wrote TD Cowen analysts led by Andrew Charles.
Ann Arbor, Michigan-based Domino’s has been executing a series of growth initiatives that have included increased advertising and programs to boost operations. Weiner also said the company’s revamped loyalty program was a comparable-sales driver.
This is the second consecutive quarter in which Domino’s exceeded analysts’ domestic same-store sales expectations.
(Updates with shares in fourth paragraph.)
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