American restaurant chain Domino’s Pizza Inc. (DPZ, Financial) reported its second-quarter financial results on Thursday. While the company’s earnings topped expectations, its revenue and comparable store sales fell short of estimates.
Revenue, earnings and other key metrics
The company’s adjusted earnings per share for the second quarter came in at $1.84, topping estimates of $1.75. Revenue grew 24% from the prior-year quarter to $779.4 million, missing expectations of $784.6 million.
The fast-food chain, which has posted positive U.S. comparable sales growth for 29 successive quarters, registered overall domestic same-store sales growth of 6.9%. Comps at U.S. franchise-owned stores surged 7% and company-owned stores saw a 5.1% increase. Further, Domino’s global comps increased 4%, which was below analysts’ expectations.
The company posted global retail sales growth of 12.6% during the quarter. This was mainly attributed to an increase in comps as well as the average number of stores opened during the quarter.
Looking ahead
During the earnings call, the company said it will increase its capital expenditure this year in order to open more than 2,000 new stores over the next 10 years, increasing Domino's store count in the U.S. from 5,692 to 8,000.Ă‚
In addition, Domino's is planning to open a new supply chain center by the end of the year and has plans for two more. As a result, the company projects its full-year gross capital spending will be $115 million to $120 million.
Disclosure: I do not hold any positions in the stocks mentioned in this article.
