Domino's Pizza Inc (NYSE:DPZ) shares climbed about 3% on Monday after the company reported second quarter results that topped revenue expectations but fell short on earnings, while highlighting continued order growth and global store expansion.
The pizza chain reported adjusted diluted earnings per share of $4.07 for the quarter, below analysts' consensus estimate of $4.19, according to the figures provided.
Revenue increased 4.3% year over year to $1.19 billion, slightly ahead of expectations of $1.18 billion.
Global retail sales, excluding foreign currency impacts, rose 3.0% from a year earlier. U.S. same-store sales increased 0.1%, while international same-store sales, excluding foreign currency effects, declined 0.1%.
Domino's added a net 209 stores during the quarter, including 26 in the United States and 183 internationally, bringing its global store count to 22,531.
Income from operations increased 3.1% to $232.0 million, while net income rose 3.6% to $135.8 million. Diluted earnings per share increased 6.8% from $3.81 a year earlier, aided by share repurchases that reduced the weighted average share count.
Domino’s CEO Russell Weiner said the company delivered meaningful order count growth despite ongoing pressure on consumer demand across the U.S. quick-service restaurant industry.
He added that growth in both delivery and carryout orders helped attract new customers, supporting the company's loyalty program, supply chain business and long-term market share ambitions.
“Our scale and competitive position have never been stronger. Domino’s is uniquely positioned to continue gaining market share and delivering long-term value for shareholders,” Weiner said.