Domino’s Pizza Inc share price soars, quarterly profits exceed expectations

Dominos Pizza Inc reported on Tuesday that Q3 profit surpassed Wall Streets estimates, another better-than-expected performance, thanks to strong sales overseas and on home turf in the US, where competitors struggle.

For the quarter ended September 7th, the second-largest U.S. pizza chain by store count reported a $35.6 million net income, or 63 cents per share, beating expectations for 61 cents per share. This was an increase compared to last years $30.6 million net income, or 53 cents per share, during the comparable period.

The company has topped analysts predictions, which averaged 61 cents per share, according to Thomson Reuters I/B/E/S.

Pizza sales overall have stayed mostly flat, but Dominos has reported hefty results in the recent years and managed to gain ground over its competitors, after the company reworked its recipe with thicker crust and a new mix of cheeses in order to fend off rumors that its pies werent as good as its rivals.

In the U.S., sales at outlets open at least one year rose 7.7% in the third quarter. The company has been trying to expand in its home market, but has struggled due to higher costs and rough competition since the recession.

At the end of Q3 Dominos had 5 002 stores within the U.S. and 6 119 international outlets. During the recent quarter it opened 183 new locations, mainly overseas.

For an 83rd consecutive quarter Dominos international division performed strong, reporting a 7.7% same-store rise in the third quarter. Overall revenue rose 10.5% to $446.6 million, compared to analysts projections for $434.8 million.

Dominos main competitors include Papa Johns International Inc., Little Caesars Pizza and Yum Brands Incs Pizza Hut.

Dominos Pizza Inc closed at $75.72 on Monday in New York. On Tuesday the company gained 8.23% to trade at $81.83 at 14:58 GMT in New York. The company is valued at $4.17 billion. According to the Financial Times, the 12 analysts offering 12-month price targets for Dominos Pizza Inc have a median target of $81.00, with a high estimate of $99.00 and a low estimate of $68.00. The median estimate represents a 6.97% increase from the previous close of $75.72.