10:48 AM EDT, 10/10/2024 (MT Newswires) -- Domino's Pizza's (DPZ) third-quarter earnings beat Wall Street estimates while revenue fell short of market expectations as the pizza restaurant chain lowered its growth outlook for annual global retail sales and income from operations for 2024.

The company's net income ticked up to $4.19 a share for the three months through Sept. 8 from $4.18 a year ago, topping the Capital IQ-polled consensus of $3.64. Revenue improved 5.1% year over year to $1.08 billion, but was shy of the Street's view for about $1.1 billion.

Higher revenue from franchise royalties and advertising in the US, as well as supply chain helped drive the overall topline results. Supply chain revenue growth was boosted by higher order volumes and a 1.3% increase in the company's food basket pricing to stores, Domino's said.

US same-store sales advanced 3%, "fueled" by transaction growth from the company's rewards program and marketing initiatives, Chief Financial Officer Sandeep Reddy said on an earnings call, according to a Capital IQ transcript. International same-store sales, excluding the impact of foreign exchange, edged 0.8% higher, down from a 3.3% increase in the prior-year quarter.

"We did begin to see macro and competitive pressures impact our results in August and particularly the low-income customer," according to Reddy. "We saw pressure in our Asia, Europe and Middle East markets."

The pizza chain operator saw global growth of net 72 stores in the quarter, with 24 openings in the US and 48 internationally. Global retail sales inclined 5.1%, excluding foreign currency.

The company now anticipates annual global retail sales growth of about 6% and a roughly 8% gain in annual income from operations for fiscal 2024, citing a "challenging macroeconomic environment" and its impact on global business trends. That compares with the long-term guidance it originally provided in December for 2024 through 2028 of more than 7% growth in annual global retail sales and above 8% growth in annual income from operations.

Domino's expects annual global retail sales growth and annual income from operations growth in fiscal 2025 to be "generally in line" with its 2024 projections. "As we look ahead to 2025, we expect to be slightly below our long-term guidance algorithm driven primarily by our international business," Reddy said on the call.

For 2026 through 2028, the company maintained its growth outlook.

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