Domino’s Pizza, Inc. (NASDAQ:DPZ) saw its shares climb 2.7% on Monday after reporting better-than-expected sales growth in the second quarter, even as earnings came in slightly below Wall Street projections.
The global pizza leader posted adjusted earnings of $3.81 per share for the quarter, missing analysts’ average estimate of $3.94. Revenue matched forecasts at $1.15 billion, marking a 4.3% year-over-year increase.
In the U.S., same-store sales rose by 3.4%, while international same-store sales grew 2.4% when adjusted for currency fluctuations. Overall, global retail sales expanded 5.6% year-over-year on a constant currency basis.
“Our team delivered strong Q2 results,” said Russell Weiner, Domino’s Chief Executive Officer. “Internationally, we continued to grow despite macro challenges. In the U.S., both delivery and carryout grew, driving meaningful market share gains within the U.S. pizza QSR category.”
Domino’s reported a 14.8% increase in operating income, reaching $225 million. However, net income declined 7.7% to $131.1 million, largely due to losses tied to its investment in DPC Dash Ltd. and a higher tax burden.
The company’s board approved a quarterly dividend of $1.74 per share, set to be paid on September 30. Additionally, Domino’s bought back 315,696 shares during the quarter for a total of $150 million. The company still has $614.3 million available under its existing share repurchase program.
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