Domino’s reported earnings on weaker-than-expected fiscal-third-quarter earnings.
In the quarter ended Sept. 6 the Ann Arbor, Mich., company earned $2.49 per share up 22% from $2.05 in the year-earlier quarter. The latest figure was short of the consensus analyst estimate of $2.79 a share in a FactSet survey.
Revenue increased 18% from a year earlier to $967.7 million, topping the estimate of $953 million.
The profit in the quarter reflected factors including higher U.S. franchise revenue, offset partly by more performance-based compensation expense as well as covid-related costs, including more compensation and enhanced sick pay for front-line workers.
The company said the revenue increase stemmed primarily from higher U.S. retail sales. U.S. same-store sales grew 17.5%. International comparable sales climbed 6.2% in the period.
The higher U.S. revenue reflected “customer ordering behavior during the covid-19 pandemic,” Domino’s said. Consumers who stayed in during the pandemic often ordered food delivered to their homes.
“Our strong third-quarter results once again demonstrated our focus on value, service, quality and innovation to meet customer needs,” Domino’s Chief Executive Ritch Allison said in a statement.
Domino’s added 83 net new stores in the period, including 44 in the U.S. and 39 internationally. Domino’s closed 126 stores in the period, mainly in India.