Domino's Pizza leaves bad taste as sales miss expectations

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Sharecast News | 19 Jul, 2018

Updated : 14:12

America's Domino’s Pizza, the world’s largest pizza company, surprised Wall Street on Thursday after second-quarter sales missed expectations.

Same-store sales at company-owned outlets in the US were ahead 5.1% in the second quarter. But analysts had been looking for an increase of around 6.6%.

In the group’s international business, sales rose 4%, below forecasts of around 5%.

Net income for the three months to June 30 was $77.4m, up from $65.7m a year ago. Total revenue was ahead 24% at $779.4m, helped by internal accounting changes and slightly ahead of forecasts.

Supply chain revenue from franchisees rose 13% to $440.9m.

Chief executive Ritch Allison said in a statement that the business had delivered “great results”. He added: “Global retail sales remain strong, as we see our franchisees building new stores, growing same store sales and bringing customers back again and again.”

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