The stock of Domino’s Pizza (DPZ) is up 5% after the restaurant chain reported first-quarter financial results that beat Wall Street forecasts on the top and bottom lines.
The pizza chain reported Q1 earnings per share (EPS) of $3.58 U.S., well ahead of the $3.40 U.S. consensus expectation among analysts. Profits were up 22% from a year earlier.
Revenue during the January through March quarter came in at $1.08 billion U.S., which was slightly above Wall Street forecasts. Sales rose 6% from a year ago.
Domino’s attributed the strong financial results to accelerating sales at its more than 20,000 outlets worldwide.
The company is executing its “Hungry for More” growth strategy that aims to open 1,100 new stores by 2028, increase retail sales by 7% a year, and grow operating income by 8% per year.
Most of Domino’s outlets are run by franchisees who pay the company royalties and fees.
Same-store sales increased 5.6% at Domino’s U.S. locations in Q1, beating the 1% growth at its international locations. The U.S. growth was largely driven by higher delivery orders.
In 2023, Domino’s started working with Uber Eats (UBER) as part of a push to improve sales in its delivery channel. Management said they expect Uber sales to reach 3% of total sales by the end of this year.
Last September, Domino’s relaunched its loyalty rewards program to better engage with lower-frequency customers. By the end of 2023, the program had 33 million active members.
During Q1, Domino’s opened 164 new restaurants, all but 20 of which are situated overseas.
The company said it repurchased $25 million U.S. worth of its own stock in Q1. The company also declared a $1.51 U.S. per share quarterly dividend to be paid on June 28 of this year.
Prior to today (April 29), the stock of Domino’s Pizza had increased 60% over the last 12 months to trade at $499.07 U.S.
