Domino’s Pizza Inc (NYSE:DPZ) shares are trading higher after the company reported third-quarter results.
The company reported sales growth of 5.1% Y/Y to $1.08 billion, missing the analyst consensus estimate of $1.10 billion.
The revenue increase was primarily driven by higher supply chain revenues, U.S. franchise advertising, and U.S. franchise royalties and fees.
The growth in supply chain revenues was aided by higher order volumes, and an increase in the company’s food basket pricing to stores.
Global retail sales increased 5.1%, excluding the impact of foreign currency. Same-store sales in the U.S. grew 3.0%, while International same-store sales (excluding foreign currency impact) increased 0.8%.
Gross margin for the quarter expanded to 39.2% from 38.8% a year ago. U.S. company-owned store gross margin rose by 1.0 percentage point, driven by higher customer transaction counts.
Supply chain gross margin increased by 0.6 percentage points, primarily due to procurement productivity.
Operating margin for the quarter rose to 18.6% from 18.3% a year ago quarter. EPS of $4.19
