Oct 14 (Reuters) - Domino's Pizza posted
better-than-estimated U.S. same-store sales for the third
quarter on Tuesday, driven by promotions and new menu items that
appealed to consumers seeking affordable dining options.
Fast-food demand in the U.S. remains pressured as sticky
inflation and economic uncertainty, along with several quarters
of menu price hikes, pushed consumers to tighten household
budgets and prioritize value when dining out or ordering in.
To cater to the shift in consumer spending, Domino's revived
its "Best Deal Ever" promotion on August 25, offering
any-topping pizzas for $9.99. It also introduced other items
such as the parmesan-stuffed-crust pizza.
The company's U.S. same-store sales grew 5.2% during the
quarter, compared with analysts' expectations of a 4.01% rise,
according to data compiled by LSEG. Domino's also benefited from
its delivery partnership with DoorDash ( DASH ) in the U.S.
Its quarterly earnings per share for the three months
ended September 7 were $4.08, compared with the estimate of
$3.97, helped by higher order volumes.
Quarterly international same-store sales growth of 1.7%,
however, fell short of an estimated 1.91% rise, as the company
faces choppy demand in some markets such as Japan and Australia.
Revenue for the third quarter rose 6.2% to $1.15 billion,
while analysts estimated $1.14 billion.
U.S. company-owned store gross margin fell 0.5 percentage
point from a year earlier, hurt by higher costs of some
commodities such as cheese and pork.