By Tomi Kilgore
Same-store sales in the U.S. rise above expectations, to snap a streak of misses
When you think of Domino’s Pizza Inc., you think of pizza delivery, and investors appear happy to see that the pizza chain is seeing deliveries rise again.
The stock (DPZ) rallied 3% in premarket trading Monday, even as Domino’s missed second-quarter profit expectations. On the bright side, domestic same-store sales, or sales of stores open at least a year, beat expectations for the first time in more than year, and the company saw sales growth in both carryout and delivery.
In the first quarter, the company’s deliveries had fallen 1.5%, the company said, as lower-income customers were being hurt by economic pressures including persistent inflation. That was the same issue the quarter before that, when deliveries declined 1.4%.
But for the second quarter, Chief Executive Russell Weiner said “both delivery and carryout grew,” helping drive gains in market share.
The company also said second-quarter same-store sales for all U.S. stores rose 3.4% from a year ago. That was well above the average analyst estimate compiled by FactSet of 2% growth, marking the first beat since the first quarter of 2024. And the margin of the beat was the widest since the first quarter of 2023.
Meanwhile, net income fell 7.7% to $131.1 million, due to unfavorable changes in an investment and a jump in the effective income-tax rate to 22.1% from 15%.
Earnings per share were down to $3.81 from $4.03, and were below the FactSet consensus of $3.94. That marked only the second bottom-line miss in the past 11 quarters.
Total revenue increased 4.3% to $1.15 million, in line with expectations.
The stock has gained 11% in 2025 through Friday, while the Consumer Discretionary Select Sector SPDR ETF XLY has lost 1% and the S&P 500 index SPX has tacked on 7.1%.
-Tomi Kilgore
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07-21-25 0732ET
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