Domino's Pizza sales soar despite fast-food slowdown

AP News
Posted: Oct 18, 2016 2:46 PM
Domino's Pizza sales soar despite fast-food slowdown

ANN ARBOR, Mich. (AP) — Americans are apparently still hot for home-delivered pizza: Domino's Pizza posted a jump in sales in the last quarter, even as other fast-food companies have reported weaker sales growth.

Domino's also reported better-than-expected third-quarter earnings and revenue, and its shares jumped to an all-time high Tuesday.

Rivals McDonald's, Wendy's and Burger King have blamed weaker-than-expected growth on cheaper groceries, political uncertainty and other factors, but Domino's didn't report any of those problems Tuesday. It said that sales at U.S. stores open at least a year — considered an important measure of a retailer's health — rose 13 percent in the last quarter from the year before. That's above the 8 percent rise analysts had expected, according to FactSet.

The company's year-old loyalty program "significantly" increased orders, Domino's Chief Financial Officer Jeffrey Lawrence, said in a conference call with investors and Wall Street analysts. Customers earn a free pizza after they spend a certain amount on online orders.

Easy online ordering may also be helping. Paul Westra, an analyst at Stifel, said in a note to clients that Domino's is in the "forefront" of how Americans want to order and pay for food. Beginning last month, for example, customers could order a pizza through Facebook's Messenger app. Before that, users could text or tweet a pizza emoji to Domino's to send in their order. In April, it launched a no-click smartphone app that automatically orders when the app is opened.

For the quarter that ended Sept. 11, the company posted net profit of $47.2 million, or 96 cents per share, up from $37.8 million, or 67 cents per share, in the same quarter a year ago. Revenue rose 17 percent to $566.7 million in the period. Both earnings and revenue beat Wall Street expectations, according to Zacks.

The Electoral College Debate
Walter E. Williams

Shares of Domino's Pizza Inc., based in Ann Arbor, Michigan, rose $10.99, or 7.2 percent, to $163 in afternoon trading Tuesday. Earlier, the stock touched an all-time high of $163.73.


Elements of this story were generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on DPZ at


Keywords: Domino's Pizza, Earnings Report